US government "invested" in the US market at a far worse position 2008 crash. Everyone talks about a turn around but all it has been is a paper profit in the market prices, there is no real underlying strength. The FED emptied the gun completely with their one and only real bullet - Interest rates and they have not reloaded for the next crash. The reality is that the 2008 crash was only halted, not stopped, healed or turned around. This book was written a few years ago and forecasts this very set of events happening leading into the real correction to come, have a read of : Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown. To top it off, they have passed laws pretty much under the radar, that all personal bank accounts will be "taxed" in the next crash. Meanwhile, China knows that they are reaching the point where they have to transfer their economy from a output model to consumer model. To do this will require the greatest move of people from rural and bring them into the rest of the system. They have allowed the building of infrastructure, housing and services to facilitate this that far surpass any current need or market drivers and the only thing left is the collapse of the financial system to devalue these assets and make it affordable for the lowest socioeconomic group for this move to happen. The investors/developers who loss out on this devaluation mean nothing. We in the west just cant comprehend the mentality of actions like this that leads to what we would consider disaster but for China as a whole will mean a massive leap forward on the next upswing. Have to remember, it wasn't long ago that millions died of hunger as the country made its last transition. They think fundamentally different from the west and run on a 100yr plan. We're lucky to get a 2yr plan. They are doing nothing more then they have watched the west do. They just do it squashed into a smaller time scale.
You mean China has an interest or is intentionally crashing it's market? Sounds like straight out of the tinfoil hat playbook.
Video of those ghostcities and future ghost cities just shows you how they are inflating their GDP by the continuation of building for no reason what so ever.....i have been watching and talking about China's growth to no where for years, why it's still not even taking center stage is beyond me, it amazes me how many people are ignoring this catastrophe that's just waiting to unwind and create a world wide crisis never seen before. ...
So let me understand correctly. The US indexes lighten up by a few percent and you start to fault the Chinese for everything under the sun in the exact same way you faulted the Japanese in the 90s?
I have been talking about the bubble in China for years, I have posted numerous postings on their ghost cities wellllllll before the US markets started falling from their historical highs and well before the indexes lightened up by a few percentage points....I just didn't hear about their ghost cities and malls last week, I have know about this since 2012 and have been following it ever since.... Here is a post from EARLY 2013 S2007S 16,137 Posts 109 Likes About a year ago or so there was a few videos going around about ghost malls in China, this one takes it to a new level and beyond....why this is going ignored is beyond my comprehension, just like BUBBLE ben bernanke laughed at the housing bubble back in the day as if it didnt exist the same thing is happening again, this time its in China and once this bubble bursts its going to be felt everywhere..... seems to me they are just building to build, only way to keep their GDP growing is to keep producing, and producing they are.... I have read that construction in China accounts for just about half of China's $8 Trillion economy, now once that slows, that nice 7-8% GDP growth rate that used to be above 10% not too long ago will probably fall to under 5% and once the RE bubble in china bursts it will take most of the world economies with it including the US...once again BUBBLE ben bernankes cheap easy money policies and the trillions of dollars that has been pumped into the US economy has created these problems world wide. China had a stimulus of their own of around $500-$600 US Billion back a couple of years ago. You know they needed to stimulate their economy just like the rest of the global economies cause the only for an economy to function today is with cheap worthless dollars! <embed src="http://cnettv.cnet.com/av/video/cbsnews/atlantis2/cbsnews_player_embed.swf" scale="noscale" salign="lt" type="application/x-shockwave-flash" background="#333333" width="425" height="279" allowFullScreen="true" allowScriptAccess="always" FlashVars="si=254&&contentValue=50142079&shareUrl=" /> #1 Mar 7, 2013Report Reply Share
I hardly find anyone in the professional sphere who would argue against the claim that China generates at the very least 5% growth. I would love to hear from those you can surely reference, highly acclaimed economists or research houses. Let's hear it...
Government Stimulus: Pyramids, National Parks, And Ghost Cities By Seung Ho Park, Shaomin Li, and Renze Zhang What does constructing pyramids have in common with building national parks? If we ask the late economist John Maynard Keynes, he would probably say both contribute to the GDP. As we have all learned by now – thanks to Keynes – during an economic recession with massive unemployment, the government can hire workers to build pyramids or national parks. While neither the mummies inside the pyramids nor the protected redwoods in the parks may produce any consumable products, the workers will get paid and in turn spend their money in other sectors of the economy, therefore achieving the multiplier effect and ultimately enlarging the GDP. While this explanation implies wasteful activities, it is not the impression we wish to give readers. As a matter of fact, ever since Keynes, both liberal and conservative governments in the West have been using government stimuli during economic recessions. Even the staunch free-market advocate, the late Nobel laureate Milton Friedman, conceded in 1965 that “we are all Keynesians now.” Unfortunately, while some governments’ stimuli help bring the economy back from the verge of a collapse, others are less effective and even do more harm than good in the long run. So the key is not whether to use government stimulus, but how to use it . A comparison between the U.S. and China may shed light on this discussion, one that’s even more relevant now as the Chinese government pumped 150 billion yuan into its economy on Wednesday to compensate for the capital flight that has accompanied its recent back-to-back surprise slashes in the value of its currency . Continues with this link http://www.forbes.com/sites/ceibs/2...lus-pyramids-national-parks-and-ghost-cities/