Chinese Stock Market

[rogerluli]

I'm no economist but this doesn't sound good.

 

http://www.telegraph.co.uk/money/main.jhtm.../ccchina126.xml

 

Whew...a long article and even longer comments...what interested me the most was all the info on the tremendous job losses in China...Laopo has a friend in Donguang, a major Pearl River delta manufacturing center, and it is certainly happening there with factories closing left and right... With unemployed masses of people in the cities perhaps my prediction was wrong and the destabilization of China will occur in the cities and not in the countryside...

[Guest Mike and Lily]

I'm no economist but this doesn't sound good.

 

http://www.telegraph.co.uk/money/main.jhtm.../ccchina126.xml

 

 

It sounds to me like they know what they're doing, unlike some other countries we know of - foreign "hot money" in the form of US debt may not be all that good of a deal.

 

China knows exactly what they're doing. They are trying to avoid making the same mistake that Japan made in the 80's when they caved in to US pressure to rapidly increase the value of their currency. The Japanese economy has never fully recovered from doing that. China wants to avoid making the same mistake.

Edited August 26, 2008 by Mike and Lily (see edit history)

[IllinoisDave]

I'm no economist but this doesn't sound good.

 

http://www.telegraph.co.uk/money/main.jhtm.../ccchina126.xml

 

Whew...a long article and even longer comments...what interested me the most was all the info on the tremendous job losses in China...Laopo has a friend in Donguang, a major Pearl River delta manufacturing center, and it is certainly happening there with factories closing left and right... With unemployed masses of people in the cities perhaps my prediction was wrong and the destabilization of China will occur in the cities and not in the countryside...

Yeah, that's what caught my eye too. I hadn't heard the bit about so many factories closing. Disheartening to say the least.

[whutthapho]

I'm no economist but this doesn't sound good.

 

http://www.telegraph.co.uk/money/main.jhtm.../ccchina126.xml

 

 

It sounds to me like they know what they're doing, unlike some other countries we know of - foreign "hot money" in the form of US debt may not be all that good of a deal.

 

China knows exactly what they're doing. They are trying to avoid making the same mistake that Japan made in the 80's when they caved in to US pressure to rapidly increase the value of their currency. The Japanese economy has never fully recovered from doing that. China wants to avoid making the same mistake.

 

PRO-PA-GAN-DA

[Dennis143]

The Chinese mutual funds FXI and MCHFX are up 60% (down from a high of 160%) for the last 2 years, while the Hang Seng is up only 20%

Only 20% ?

 

Heck, I'd be happy with that paltry gain with my 401K.