The China bubble has already burst?

the shanghai stock market has been completely devasated with no end in sight, i would say even worse than the US in just a few short weeks. Everyone is scratching their head wondering why the chinese government hasnt stepped in yet, which is very unusual as the govt usually keep a tight control on the market with aggressive policies (both up and down), think bennie on steroids. Not sure what's cooking this time....

but overall the economy is still ok, no massive layoffs, no slowdowns, no housing issues yet... exports on extremely low price goods(such as chopsticks, 99cent store items etc..) and shipping industry in general are down due to fuel prices (shipping cost is about 5-10x as much, wiping out profits on all those cheap goods with very thin profit margin).
 
the peoples republic of China, remains in control, just witness what is happening in Lhasa, both with the introduction to easier access to Tibet and the region, the railroad on the top of the world that traverses that barrier desert and makes travelling there easier, and the changes to the nomadic way of life,

those poor Tibetians, being some of the most remote people on earth facing the modern world without preparation...

in short, China continues to control the information flow on both businesses and their true financial performances,,

their true or perceived raw materials usage and demands (both fluid as in energy, and raw, as in steel, coal, concrete and other building and construction goods)...

that tight grip on information sharing leaves those sharp tounged former Enron manipulators room enough to justify that supposed demand for Oil and Fuel products have justified the 400%+ increases in world pricing over the last 8 years, all with the complicity and tacit support of the US Oil Administration (not necessarily the same as the Bush Administration, but who can tell anymore)...

so that lack of consistent and honest information flow that other capital markets and countries take for granted, is what others have traded upon and rigged some of the most detrimental market manipulative conduct in the markets....

perhaps they will help close that gap, perhaps not, but in the mean time, that gap has accounted for more inflation worldwide than one can imagine....
 
very true, notice how the same article discusses rampant inflation of the yuan, AND how the yuan has outperformed the greenback hurting exports.

hmmmm, somebody's got to connect the dots eventually. Right?

:confused: :confused: :confused:

Quote from drsteph:

Just for chits and giggles:

Take a peek at the USD/CNY (yuan) chart for the last year or so. Pretty much like falling off a cliff with a parabolic component.
So, if you get burned on the equity component of chinese equities by buying at the wrong time, at least the FX component should bail you out somewhat.

You can figure it out for yourselves.
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:confused:
 
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