Three screenshots from MarketWatch today. Three retorts.
1) Seven Years.
The MSM tells us of the seven years of misery, but draws no correlation to any event from seven years ago.
Can we think of something that happened seven years ago that may be the cause?
Hint: Yes We Can.
Related at GP: Worst. Jobs. President. Ever… Labor Participation Rate Stuck at 38 Year Low
Do not question the template comrades.
Some excerpts from the article: Opinion: Beijing’s incompetence is now China’s biggest problem,
By Craig Stephen.
Every move policy makers take shows how clueless and ineffective they really are.History is full of useful idiots who assume an event wasn't scripted. Craig is just the latest.
The term "Mirror Imaging" is at play here. Mirror Imaging is the beholder's assumption (there is that word again) that the other side shares the same values and intentions as he. China wants to be a world leader at everything: military, economic, etc. Their recent moves have hurt the single global player who can stifle their expansion plans. And you call them clueless? Really?
For much of the summer, global markets have been able to carry on with a detached bemusement at Beijing’s fumbled handling of its stock market burst. But after last week’s “Black Monday” plunge in Shanghai stocks triggered a global equity selloff, suddenly the policy competence of China’s leaders matters to everyone from London to New York.
You know who the smart people are? The ones who got out of stocks while people like Craig watched with "detached bemusement." What are the odds one of Craig's next articles contain the words "speculators" and "hoarding?"
Daiwa Research warns, “The debate for China is no longer between realizing a soft landing or a hard one. It is now between a hard landing and a financial crisis.”They had their hard landing back in June when their market dropped 25%. Their choice was clear: 1) continue status-quo and let the US export inflation to China, or 2) join the US, Japan and others in money-printing abandon.
Last Monday’s plunge was attributed to rumors Beijing had capitulated in its stock-support efforts.Another way to say this: Last Monday’s plunge was attributed to rumors Beijing chose to devalue its currency in the same irresponsible fashion as the US Quantitative Easing programs.
3) More correction:
Stocks are dropping because they are grossly overvalued, because the market is built on the quicksand of monetary policy mismanagement, and because the larger economies are in a race-to-the-bottom currency war.
The Dow (today's close 16102) is down 12% from its all time high (18351), and 8% in the past month (17550).
Or, less than half the losses in China's stock market.
What does that mean? Absolutely nothing. I was just curious and thought I'd share.
Have a great weekend.