DISQUS

MorgaineSwann · 1 year ago

OK, I know next to nothing about economics, so maybe some other readers can answer this - What happens to our debt if China's market collapses? What happens if they want the money we've borrowed back? Could there be a domino effect?

LeslieB · 1 year ago

MorgaineSwann 45 minutes ago
OK, I know next to nothing about economics, so maybe some other readers can answer this - What happens to our debt if China's market collapses? What happens if they want the money we've borrowed back? Could there be a domino effect?

Yes, I was thinking the very same thing?

Filo · 1 year ago

What good is our military if we can't just tell China to go pound salt?
We owe you nothing. Piss off.

devis1 · 1 year ago

Wow. Glad I didn't invest in those emerging market funds that were being pushed pretty hard. Oh that's right, I didn't have enough money anyway. Is India next?

ThingsComeUndone · 1 year ago

McLaughlin from the PBS McLaughlin group was always pushing China and hinting he bought their stocks he kept insisting that China had to revalue its currency upward which would raise the value of their stocks. He never noticed that a higher currency would hurt the export business.
This market has been very good even when ours was bad how many Americans like McLaughlin are going to get hurt? How many bought on margin to buy Chinese stocks? Next quarter investment funds with exposure to China should report losses. Which investment banks have Big China exposure?

ThingsComeUndone · 1 year ago

LeslieB China bought U.S Treasury bills if they are desperate for cash they can sell them at a lower rate which given how the dollar has dropped in value since the last time China bought T bills that means the loss would be bigger. So I do not think that is likely.
But what if China doesn't buy as many T bills? What if in this crappy world economy the world does not buy enough T bills?
Then the Federal Reserve has to sweeten the pot by raising interest rates until interest rates are high enough to attract buyers again.
Which means the U.S Stock market will tank. The housing market will tank even more as the interest rate on home loans goes up even more.

OlderAndWiser · 1 year ago

OT, but I'm lilstening to Clinton addressing her white audience and using the usual code words ("you people", etc.) and I know in my heart that she won only because of the racist vote...then, she dipped into a more "progressive" mode, even citing the civil rights movement and Chelsea being aware of blacks...she's awful.

At least her "win" is not in double digits.

OlderAndWiser · 1 year ago

What about food?

http://www.bloomberg.com/apps/news?pid=20601109...

Most of us in the US still eat rather well, considering that. I think China is going to have far more problems than just its stocks as well since they're curbing exports of rice. And I fully expect things to go even more downhill in the US. People I know are starting to hoard; being low income, I've even started stocking up on basics, but not to that point.

TomJoad · 1 year ago

With all the talk about boycotting the olympics, personally I am for boycotting the opening ceremony no matter if it is slightly hypocritical, after the debacle of the torch (what a JOKE..they should have ended that after it first became apparent what was going to happen. I think the protestors got a victory there...good for them!) and Chinas heavy handedness and inability to even pretend to regret that...it would be good.

But, here's the thing, IF you think it is importan (and I do) we ALL CAN BOYCOTT THE OLYMPICS...all it takes is not reading about it, not watching it on TV. That's all. If you want you also can send in email to sponsors, and advertisers.

So what if it is "symbolic", that can change peoples hearts, and even if it is not powerful enough to change anyone, at least it was a stand.

ThingsComeUndone · 1 year ago

The Chinese Stock market was expected to collapse after the Olympics. Everyone knew it was a bubble waiting to pop.
But much like the Bush housing bubble which I'm sure Greenspan expected to explode after a Democrat took the White House it popped early.
How will China handle this? My advice wait before buying Chinese stocks sure the price is low but it could get worse and a recover could take decades like Japan's did.
Or ours might.

Indigo · 1 year ago

Financial markets are always rollercoasters. The Beijing government is learning that but slowly. The point in favor of Beijing is that they are learning.

OlderAndWiser · 1 year ago

Well, with the housing meltown and mortgage securities frauds affecting every large bank and investment house, how will a depression in Chinese stocks affect them?

http://www.bloomberg.com/apps/news?pid=20601109...

Even the normally very conservative Swiss banks are affected. Yesterday, shareholders at Wachovia called for CEO Ken Thompson's resignation. Today is the shareholders meeting at Bank of America...let's see what they do to Ken Lewis, who has acquired Countrywide Mortgate, over past objections.

Bush_Bites · 1 year ago

The market for our bonds can't be very good now.

How will Bush finance his deficit?

Bush_Bites · 1 year ago

But, here's the thing, IF you think it is importan (and I do) we ALL CAN BOYCOTT THE OLYMPICS...all it takes is not reading about it, not watching it on TV. That's all. If you want you also can send in email to sponsors, and advertisers.

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Easy for me.

I think the Olympics are stupid anyway.

Bush_Bites · 1 year ago

devis1
Wow. Glad I didn't invest in those emerging market funds that were being pushed pretty hard. Oh that's right, I didn't have enough money anyway. Is India next?

-----

Yeah, I was suspecious of that "hot new market" talk too.

Bubbles always burst.

Bush_Bites · 1 year ago

Well, what happens is the rich guys pump the market up, then the guys who don't know what they're doing get in on it, then the rich guys rake off their profits, then they guys who don't know what they're doing get left holding the bag when the Bubble Pops.

jr · 1 year ago

"get an adjustable rate mortgage"-Alan Greenspan to the Chinese people

LeslieB · 1 year ago

Thanks ThingsComeUndone. Yes, Older and Wiser, I've heard stories about food shortages, especially rice and flour, and hoarding in the US recently too at rawstory.com. Couple those stories with stories of water shortages, drought in the Southeast, etc., due to global warming, which will only get worse, and the rising cost of oil. 33 countries have been having food riots.

Wonder how much Bush's economic policies have contributed to the fall of markets worldwide? Because everything is so interconnected now. The worse part is, we're just seeing the beginning of this. It's not over.