General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums"Last month, the dog was eating what I eat. Last week, I was eating what the dog eats. This week..."
....This week, I think Ill eat the dog.
(sour joke doing the rounds in China after stock market swings)
The Chinese government is permanently terrified. It is terrified of climate change, of slowing economic growth, even of a fall in the stock market of anything that might cause the population to turn decisively against it. When you are running a 66-year-old dictatorship, and your only remaining credibility in the publics eyes is your ability to keep living standards rising, any kind of change is frightening. <snip>
But the Chinese government intervened in a very big way. First it cut interest rates to the lowest level ever. When that didnt stop the slide in prices, it banned large investors (holding more than 5% of a listed companys shares) and all foreign investors from selling their shares for six months. It encouraged about 1 300 Chinese companies half the stock market to suspend trading in their stocks. It forbade any new listings on the markets. It even ordered a state-backed finance company to make new loans to people who want to make bigger bets on the stock market than they can afford. <snip>
China is around the 30-year point now, and its regime is doing all the same things that the Japanese government did just before the collapse there.
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Link to article:
http://www.theindependent.co.zw/2015/07/31/china-following-path-to-economic-ruin/
madokie
(51,076 posts)not because I see it as a good thing. We need to be aware of what is going on and in that context I recommend this.
Recursion
(56,582 posts)Last edited Fri Jul 31, 2015, 07:51 AM - Edit history (1)
Meaning it's still 80% above where it was a year ago. So talking about "$4 trillion being wiped out" is ridiculous; $2 trillion was created.
Erich Bloodaxe BSN
(14,733 posts)But the people who profited and the people who lost aren't likely to be the same people. Usually, the 'small money' chases the big money. The little people see the gains big money made and get in late, then they do the losing, then big money buys up the shattered remains at a discount, while the little people are screwed.
Erich Bloodaxe BSN
(14,733 posts)This is the crap that goes hand in hand with it. It's all part of how the middle class is stripped of wealth and that wealth is transferred to the plutocrats so they can gamble with it.
newfie11
(8,159 posts)sendero
(28,552 posts)... that any government thinks these sorts of measures work. All they do is further panic the markets.
The Chinese stock market rose 150% last year. It has to go down. If the Chinese govt wanted to do something useful, maybe they could have lessened the ridiculous boom that gave rise to this crash. Too late now.
Uncle Joe
(58,524 posts)Thanks for the thread, tomm2thumbs.