{"id":10157,"date":"2015-07-18T07:52:18","date_gmt":"2015-07-18T12:52:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10157"},"modified":"2015-07-18T07:52:18","modified_gmt":"2015-07-18T12:52:18","slug":"the-china-syndrome","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10157","title":{"rendered":"The China Syndrome"},"content":{"rendered":"<h3 class=\"art-postheader\"><a title=\"Permanent Link to The China Syndrome\" href=\"http:\/\/www.acting-man.com\/?p=38613\" rel=\"bookmark\">The China Syndrome<\/a><\/h3>\n<p><strong>Getting Ugly<\/strong><\/p>\n<p>I am sure that you have all been watching the meltdown in the Chinese stock markets.\u00a0 I posted a\u00a0<a href=\"http:\/\/www.economicmanblog.com\/2015\/05\/06\/latest-roundup\/\">blog<\/a>\u00a0(in the\u00a0<em>China Ad Nauseam<\/em>\u00a0section) on May 6 about the Chinese stock market, finishing up with the statement that \u201cthis is going to get\u00a0<em>really<\/em>\u00a0ugly.\u201d\u00a0 It looks like the ugliness is here.<\/p>\n<p>I claim no particular prescience here and I certainly wouldn\u2019t want anyone to mistake my writings\u00a0for investment advice.\u00a0 With this one, the only question was\u00a0<em>when\u00a0<\/em>it would blow, not\u00a0<em>if<\/em>.\u00a0 My own investment abilities are largely encapsulated in the famous saying that \u201cthe graveyards of Wall Street are filled with the bodies of men who were right too soon.\u201d\u00a0 But this is still better than being right too late.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-38614\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/07\/600x600.jpg\" alt=\"600x600\" width=\"600\" height=\"450\" \/><\/p>\n<p>I won\u2019t bother to repeat all the statistics about the meltdown, which are readily available elsewhere.\u00a0 I just want to make two points.<\/p>\n<p><a href=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/07\/SSEC3.gif\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-38616\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/07\/SSEC3-1024x622.gif\" alt=\"SSEC\" width=\"600\" height=\"365\" \/><\/a>In the meantime, the Shanghai Composite has bounced a bit, but only after China\u2019s authorities had thrown everything and then some at the situation, including bans on short selling an banning large domestic institutional investors from selling at all, via StockCharts, click to enlarge.<\/p>\n<p><strong>No \u201cYellen Put\u201d<\/strong><\/p>\n<p>The first is the implication of what is happening in China for asset prices around the world.\u00a0 The Chinese government is doing everything possible to prop up the market at this point: cutting interest rates, reducing reserve requirements, providing central bank liquidity to brokers, directing government entities to buy shares, organizing \u201cprivate sector\u201d (as if that phrase means anything in China) stabilization funds, restricting IPOs, loosening margin requirements, restricting short selling, and suspending share trading.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The China Syndrome Getting Ugly I am sure that you have all been watching the meltdown in the Chinese stock markets.\u00a0 I posted a\u00a0blog\u00a0(in the\u00a0China Ad Nauseam\u00a0section) on May 6 about the Chinese stock market, finishing up with the statement that \u201cthis is going to get\u00a0really\u00a0ugly.\u201d\u00a0 It looks like the ugliness is here. I claim [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,130,6941,7011,4190,6170,1138,860],"class_list":["post-10157","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-china","tag-chinese-stock-market","tag-chinese-stock-market-collapse","tag-investing","tag-pater-tenebrarum","tag-stock-market","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10157"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10157\/revisions"}],"predecessor-version":[{"id":10158,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10157\/revisions\/10158"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}