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Red River Valley | China has started to let the air out of their bubble ( although they don't think they have one) it does not appear to be going so smoothly the chinese stockmarket is fluctating pretty wildly last three or four day's many beleive that they have stockpiled to many commadities ( SC has alluded to this a bit I beleive) some ( me Included ) think thei is not going to go well and that it will take the world into a double dip if we do it is my opinion that the this dip will be long and hard ( world wide) and that commadities will fall well out of flavor and cash will become king.
If you are of the belief that the stimulas the federal goverment threw at us last year did no good ( and I think alot of US have that belief) and we start down on a second dip stimulas no matter what the size will not help at all, the reason being that there was reason to hope on the first program if that fail all hope fails with it. along with politacaly it will be almost impossible to get a second stimulas through in this enviroment.
The stockpiling of raw commadities by china was nothing short of unbeliveable and they will not redo that so who is going to us it the biggest consuming countries in the world are on the brakes hard ( look at the rate that credit is contraction in the USA , UK, and eruo-land) In china I am told that the average annual salery is about 2000 US dollars and they were giving people who would by a car somthing like $ 6000.00 in tax rebates and free cash to buy a car of course they got there own consumers to spend but without jobs ( from exports ) can they sustain it ?
I think we will have a pretty good Idea after tonight what China might do their stockmarket was down a couple of day's and then made a pretty good jump ( goverment intervention?) then soold off pretty hard last night again if it sells hard tonight then friday and monday might look like 29' did here.
Just something to keep an eye on | |
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A trading lesson for anyone interested. (Learning tool)
