It is always interesting to see how everyone is talking their self interest as the financial press report them for us. They are confident and love to tell the PBOC and Chinese government what to do. In the end the most important message is lost. What the Chinese government want to achieve and if they have the wherewithal to do so.
I have read some of the short sellers withering criticisms of China but I am not so confident that they will get their pay day because the Chinese set and change the rules at will. Short sellers must always bear this in mind. From time to time they allow you to make some money but the really high stake national issues investors should not try to fight the government. Not yet anyway. Those days could come but they are so far away to have practical value.
To me what China wants desperately is reorder their growth from wasteful and low quality to efficient and high quality. They cannot use the former and now very corrupt champions who excel at destroying wealth. Funds should go to the private sector.
Time we respect China more than what the capitalist America has done. Take this from the People's Daily - "A bailout of the stock market is not beneficial to the development of a sound capital market, although some analysts are suggesting the China Securities Regulatory Commission and the People's Bank of China should intervene" No Bail Out, No Bail In - no irresponsible helicopter ben. Let the "feral hogs" (term coined by Dallas Fed President just the other day) get hell
ReplyDeletewould really like to recommend a read of "Financialisation = Inequality" (http://charleshughsmith.blogspot.sg/2013/06/financialization-inequality.html)
ReplyDeletelike the other financial horsemen of the apocalypse (casino capitalism, short termism and death culture), this world is going to the dogs