{"id":9800,"date":"2015-07-08T06:14:34","date_gmt":"2015-07-08T11:14:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9800"},"modified":"2015-07-08T06:14:34","modified_gmt":"2015-07-08T11:14:34","slug":"the-crash-in-china-continues-and-is-engulfing-hong-kong","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9800","title":{"rendered":"The Crash in China Continues \u2013 and is Engulfing Hong Kong"},"content":{"rendered":"<h3 class=\"art-postheader\"><a title=\"Permanent Link to The Crash in China Continues \u2013 and is Engulfing Hong Kong\u00a0\" href=\"http:\/\/www.acting-man.com\/?p=38416\" rel=\"bookmark\">The Crash in China Continues \u2013 and is Engulfing Hong Kong\u00a0<\/a><\/h3>\n<h3><b>Efforts of Potent Directors Ignored<\/b><\/h3>\n<p>When we\u00a0<a href=\"http:\/\/www.acting-man.com\/?p=38191\">first commented<\/a>\u00a0on the emerging problems with China\u2019s market bubble, we warned that although a bounce from oversold levels was the most likely outcome, it wasn\u2019t set in stone. It appeared to us that Chinese investors were especially prone to falling for the \u201cpotent directors fallacy\u201d (a term coined by Robert Prechter of EWI many years ago) \u2013 the belief that powerful decision makers, in this case the central bank and the government \u2013 would be willing and able support the market no matter what.\u00a0 Willing they have been \u2013 able, less so.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-38420\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/07\/Oops.jpg\" alt=\"Oops\" width=\"600\" height=\"400\" \/>Chinese retail investors are shell-shocked<\/p>\n<p>Photo credit: EPA<\/p>\n<p>For a long time it has been the general impression that due to its tight control over the banking system and other sectors in the economy, China\u2019s leadership could just \u201corder the markets around\u201d. Investors who were aware of China\u2019s enormous debt problems and its insanely overvalued real estate markets were regularly baffled by the fact that China\u2019s mandarins were apparently capable of\u00a0 arresting any decline in prices or any emerging credit blow-ups with the flick of a finger. Faith in their abilities is currently being shaken to its core. This is highly relevant to the asset bubbles currently underway in other countries, even though what happens in China has little direct effect due to the country\u2019s closed capital account.<\/p>\n<p><a href=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/07\/SSEC2.gif\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-38421\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/07\/SSEC2-1024x622.gif\" alt=\"SSEC\" width=\"600\" height=\"365\" \/><\/a>China\u2019s stock market crash just keeps going \u2013 the index has now reached an important lateral support level. It will probably bounce from there, but for a variety of reasons this is actually somewhat less certain than it would otherwise be \u2013 click to enlarge.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Crash in China Continues \u2013 and is Engulfing Hong Kong\u00a0 Efforts of Potent Directors Ignored When we\u00a0first commented\u00a0on the emerging problems with China\u2019s market bubble, we warned that although a bounce from oversold levels was the most likely outcome, it wasn\u2019t set in stone. It appeared to us that Chinese investors were especially prone [&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":[5728,122,130,7063,7064,7062,6170,2914,2615],"class_list":["post-9800","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-central-bank","tag-china","tag-china-market-collapse","tag-china-market-crash","tag-chinese-market-bubble","tag-pater-tenebrarum","tag-pboc","tag-peoples-bank-of-china"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9800","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=9800"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9800\/revisions"}],"predecessor-version":[{"id":9801,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9800\/revisions\/9801"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}