Comments on: China Tries to Goose Flagging Stock Market http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Yves Smith http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock.html#comment-7970 Yves Smith Tue, 13 May 2008 05:27:00 +0000 http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock-market/#comment-7970 The deleted comment was spam. The deleted comment was spam.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock.html#comment-5625 Anonymous Sat, 22 Mar 2008 18:58:00 +0000 http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock-market/#comment-5625 Government efforts to stop dropping stock market prices which wipe out savings is not limited to the Chinese -- I have this sneaky suspicion the only times people support market capitalism are when asset values are rising -- let them fall, and "there is the potential to create social dislocation", and the need for government intervention. Is this not true of Japan and the U.S. following their bubbles? What Deng Xiaoping famously said about the color of cats cuts both ways -- if the cat is putting on weight but the number of mice is increasing, people will not let that "free market" continue. Government efforts to stop dropping stock market prices which wipe out savings is not limited to the Chinese — I have this sneaky suspicion the only times people support market capitalism are when asset values are rising — let them fall, and “there is the potential to create social dislocation”, and the need for government intervention. Is this not true of Japan and the U.S. following their bubbles? What Deng Xiaoping famously said about the color of cats cuts both ways — if the cat is putting on weight but the number of mice is increasing, people will not let that “free market” continue.

]]> By: John Stark http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock.html#comment-5619 John Stark Sat, 22 Mar 2008 17:18:00 +0000 http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock-market/#comment-5619 I'm worried about what always happens in stock markets when poorly regulated companies and stock promoters meet unsophisticated investors. When will this particular train leave the rails? I’m worried about what always happens in stock markets when poorly regulated companies and stock promoters meet unsophisticated investors. When will this particular train leave the rails?

]]> By: Abbington Funds http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock.html#comment-5617 Abbington Funds Sat, 22 Mar 2008 14:36:00 +0000 http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock-market/#comment-5617 problem is chinese accounting laws mark to market the equity holdingsof companies. as their stock market rises, the arnings of their firms tend to technically increase; when the stock market falls, these firms start to post losses. investors never really figured that out out when they got caught up in the chinese growth story hype. problem is chinese accounting laws mark to market the equity holdingsof companies. as their stock market rises, the arnings of their firms tend to technically increase; when the stock market falls, these firms start to post losses. investors never really figured that out out when they got caught up in the chinese growth story hype.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock.html#comment-5616 Anonymous Sat, 22 Mar 2008 14:21:00 +0000 http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock-market/#comment-5616 "banks pay less than 1% interest to retail customers when inflation is over 7%. That pretty much guarantees that cash will seek out better havens, and the stock market has proven to be a popular destination. Thus, too much of a fall would wipe out savings (as opposed to mere paper gains) and has the potential to create social dislocation."<br/><br/>Sounds like the US low intrest rates only savings is in 401ks and IRA's other then home prices that are now falling. The FED has done a stick save on the market threw intervention and more then likely a quid pro quo with the investment banks to drive commodity prices down in exchange for free money threw the needle exchange program, Remember stocks always go up, at least in rigged markets they do. At least China is open about it. “banks pay less than 1% interest to retail customers when inflation is over 7%. That pretty much guarantees that cash will seek out better havens, and the stock market has proven to be a popular destination. Thus, too much of a fall would wipe out savings (as opposed to mere paper gains) and has the potential to create social dislocation.”

Sounds like the US low intrest rates only savings is in 401ks and IRA’s other then home prices that are now falling. The FED has done a stick save on the market threw intervention and more then likely a quid pro quo with the investment banks to drive commodity prices down in exchange for free money threw the needle exchange program, Remember stocks always go up, at least in rigged markets they do. At least China is open about it.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock.html#comment-5612 Anonymous Sat, 22 Mar 2008 13:10:00 +0000 http://www.nakedcapitalism.com/2008/03/china-tries-to-goose-flagging-stock-market/#comment-5612 No doubt a slow down in US consumption of Chinese goods will help. LoL. No doubt a slow down in US consumption of Chinese goods will help. LoL.

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