The Chinese stock market bubble is bursting. And the government is hitting the panic button.
Having actively encouraged the bubble with cheap money, lax margin loan regulations, and constant cheerleading and propaganda, Chinese authorties apparently also think they can mop up the mess.
Wrong.
Time and time again, governments who get into the game of managing the level of stock market indices always fail.
It happened in Taiwan in 1994, and South Korea in 1997. Both were unmitigated disasters.
The consequences will be wide-reaching; China’s is the biggest stock market bubble ever.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
4 comments:
When it bursts they are going to want their hundreds of billions loned to the U.S., are you ready to pay for the spend, spend what we don't because it is coming and will bring down America's house of cards!
Can't get blood out of a stone, can ya?
The US is only compelled to the loan agreement conditions under international standards.By adhering strictly to those conditions without deviation we have them exactly where we want them.The question remains,will we accelerate payments or will we hold tight? Time will tell.
Couldn't happen to a nicer bunch.
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