Why is Shanghai immune to this decline?

Discussion in 'Economics' started by ArchStanton, Jul 27, 2007.

  1. Can anyone give any concrete reasons why the Chinese markets refused to participate in the global market correction this week?

    Shanghai is still hovering at all time highs. Even Taiwan, Korea, and Japan joined in with America and Europe on the downswing this week.

    Other than the explanation that "they're in a bubble" over there, is there any reasonable explanation? Even a bubble lets air out from time to time. Antigravity perhaps? :confused:

  2. the decoupling is just evidence that the very fundamental 'feeder' of all this economic growth is not going away.

    this is the real bottom line driver to all these markets.

    you stop buying when China GDP is bad.
  3. B1010


    China still has a long way to go. Of course they may see a correction at some point but it will probably only be temporary.
  4. B1010


  5. Daal


    because people are buying there
  6. no, China wants to disjoin its market from world markets. There is a active effort by the government for its market to be inversely correlated to world markets.

    they don't want domestic psychological parameters linked with other markets. If they become linked, then they loose control to wallstreet and european bankers.

    in the future, destruction of chinese paper assets could cause unrest in the domestic populace.
  7. China's market and economy have a large component of genuine growth. That is, "making things and selling them to the world at a profit and building national and personal financial reserves." You know, like the USA used to do after WWII.

    America's economy and markets have a HIGH component of BULLSHIT... "Fed money pump, inflation, Gummint lies, financial engineering, and outsourcing our well-paying middle class jobs to Asia so that we can continue to buy cheap stuff at Wal-Mart."

    Depending upon the degree of the cancer of these CDOs and other derivatives, the US market/economy COULD go waaaay down... we'll just have to see.
  8. 100% correct and on the money. There is a much larger game being played here. Note Paulson's presence in china this week. Coincidentally occurs after a marked US equity market correction. Interesting timing, wouldn't you think?
  9. mcheema


    great post
  10. Two thumbs up!
    One thing is clear that war is fought without guns; and replacing with worthless electronic currency.
    #10     Jul 28, 2007