So whats up with this sell off 9-20-2021

[destriero]

China is not causing a global crisis, not this time at least. LOL

Cool story, Bro. You’re already down 30 handles on spooz.

 

[newwurldmn]

IMO it'll be ring-fenced by Friday. China had the full play planned out weeks ago, if not months ago.

they probably even have the jail cells and executioners’ rifles loaded.

 

[Relentless]

Depends on Europe session.

If we open up huge my shorts go right back on. But otherwise yes - a short term bounce is a no brainer... Or is it?

@JSOP

You're welcome.

 

[JSOP]

China has near-total ability to control its markets - unlike the USA c. 2008. The government can just order banks, pension funds, SOEs and so forth to buy this or sell that (or don't sell) and the managers will do it, because if not they will be executed.

You mean total ability to intervene in the market and total ability to control politics if it wants to? To turn things upside down overnight?

If the CCP is letting this Evergrande thing boil for a few more days, it's to show they're genuinely serious about curbing excessive leverage and property speculation. IMO it'll be ring-fenced by Friday. China had the full play planned out weeks ago, if not months ago.

No if CCP is letting this Evergrande thing boil over, it's to show that it doesn't give a s*** especially when there is foreign money involved. It's only "genuinely serious about curbing excessive leverage and property speculation" when it's not a company that is started with CCP's seed money. The state-run enterprise Huarong was in the same s*** as Evergrande. It got bailed out last week so swift that we didn't even hear about it.

 

[xandman]

China may have the power to intervene. But looking at Xi's policy actions holistically, the political will is to go a different way.

Most likely, they see the dire problems ahead and is trying to steer the country back to a Maoist era thinking.

 

[destriero]

Bill Hwang didn't cause a peep. Blackrock is really the only bona fide US company on the list and they need to be warned that if they continue to stick their s*** in China when they shouldn't be, they will be on their own and no bailout will be given to them if they f*** up. UBS is Swiss and HSBC is Hong Kong really so they will definitely not be on the bailout list of US of A. So if China thinks letting Evergrande go down is going to somehow hurt the West particularly US, it's dead wrong.

Your market and econ knowledge is zero.

 

[destriero]

The global residential property markets have peaked.

 

[Retief]

The global residential property markets have peaked.

Based on what evidence and reasoning?

 

[SPX Options Trader]

global residential property markets have peaked

Sell it, short it, go all in, bet against it,...go full, maximum, leverage.
And become the next Michael Burry. Vegas or Bust.

 

[bone]

it can stay contained. Like ltcm.

Those two situations are incredibly different. With LTCM, you had the trade counter-parties (The Investment Banks) unwinding positions and providing offsets.

With Evergrande, the counter-parties are disparate entities in other parts of the economy: concrete companies, appliance companies, plumbing fixture companies, electrical supplies, all sorts of building supplies, trades and contractor labor... it’s not at all like LTCM.