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China Crash Continues; Shanghai Composite Enters Bear Market; PBOC Rumors Emerge

Tyler Durden's picture





 

After imploding in its morning session by a whopping 5.8%, which would have brought the two day crash to a stunning 10%, the Shanghai Composite rebounded trimming its losses by more than half due to so far unfounded rumors there will be a PBOC press conference later today in the last hour of trading in which it may provide some impetus for a bounce (which oddly enough is boosting US equity futures far more effectively than those of China). The expectation is that at the Lujiazui Forum (link here), the PBOC will speak alongside the the CSRS, the CBRC, and CIRC at which the PBOC will wave a white flag to the Chinese "feral hogs." Don't hold your breath: considering the China Daily oped released earlier, this seems highly improbable but at this point global markets are clutching at any and all straws. Look for big market disappointment if the PBOC refuses to address any additional liquidity provision in a few minutes or over the next several days especially since unlike the US, the Chinese central bank is not willing to be held hostage by the stock market in its mission to rid the country of shady "shadow bank" lending conduits.

Specifically, and as has been the case for a while now, the main reason for today's ongoing crash is precisely the ongoing lack of activity by the PBOC which did neither repos nor bill sales overnight, keeping excess liquidity precisely where it has been: non-existent. And as we said yesterday, the interbank liquidity stability lasted "for a very brief amount of time", with both 1 Week and 1 Month SHIBORs resuming their surge.

It got so bad, financial news website Hexun wrote an editorial in which it pleaded the PBOC to say something and give the market clear signals on its intentions in dealing the with nation’s cash crunch, as the markets are "clueless." Whether due to this, or finally crying uncle, the PBOC is now expect to come out and say something. Unless it doesn't of course. Which will probably be the case because an editorial in China Daily, the official party mouthpiece, the author said that the drop in benchmark Shanghai Composite Index shows authorities are preparing to continue painful and necessary reforms to keep the economy growing in a more sustainable manner. It is highly unlikely they will flip their stance just because the crash is continuing.

In the meantime, the result is that absent some miraculous surge in the last hour of trading, the Shanghai Composite will be down about 2.5% (Material index -4.6%, Property Index -3.4%, Commercials Index -3.8%, Financial Index -2.8%), -8% in two session, and down -22% from its February highs: an official bear market. 

This is what the carnage looked like before the now traditional deus ex rumor.

If there is no PBOC intervention, expect the US and European equity futures

 


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Tue, 06/25/2013 - 02:42 | Link to Comment MeMadMax
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It's amazing how just a stupid rumor can make investors make bad decisions ^.^ >_>

Tue, 06/25/2013 - 02:52 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I'm going to go out on a limb, something I don't like to do, and just say that maybe China has opted to dismount the Fed and BoJ reflation bullet train.

Oh look, they're waving to Kuroda and Bernanke while shouting "Good luck, bitchez!" in Mandarin.

Tue, 06/25/2013 - 03:04 | Link to Comment Hengist
Hengist's picture

deleted

Tue, 06/25/2013 - 03:21 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Ooh, ooh, me.

Please, me. Ooh.

Give me money if I'm in stawks.

Ooh, ooh, me.

 

Tue, 06/25/2013 - 02:46 | Link to Comment The Shootist
The Shootist's picture

Expect US futures to do what? kiddin'.
There are no markets, only C.B.s, with their soothing words of hopium and laughable monopoly money.

Tue, 06/25/2013 - 02:45 | Link to Comment CitizenLame
CitizenLame's picture

SHTF

Tue, 06/25/2013 - 03:00 | Link to Comment xtop23
xtop23's picture

If they actually have the balls to stay the course and ride this thing out, so they can unwind some of those horrible misallocations of capital, and the country doesn't dissolve into utter chaos, they will serve as a prime example of what SHOULD have been done in '09 here in the states.

Unfortunately, we are wayyyyy passed the steady and controlled unwind scenario.

TARP this, you parasitic banker twats.

edit; What's Mandarin for "moar?"

Tue, 06/25/2013 - 03:05 | Link to Comment Prairie Dog
Prairie Dog's picture

What's Mandarin for "moar?"

????

That's how they describe people who get their investment advice from Zerohedge

 

Tue, 06/25/2013 - 03:05 | Link to Comment Prairie Dog
Prairie Dog's picture

Zerohedge doesn't support Chinese characters! How are you going to cope when these brave new marketeers take over the world?

Try "wu yao ke jiu"

 

Tue, 06/25/2013 - 03:22 | Link to Comment xtop23
xtop23's picture

I was able to book a nice profit and get a lot of friends / family out of the Apple hotel prior to its cataclysmic decline to a 3 handle due to Reggie's posts here via ZH ( thx Reggie, you're the man )

I also made a fair bit betting against Tilson ( thx Tyler(s) )

As far as my request for "moar" in Mandarin, at least the way your comments read, indicate you totally missed their facetious intent.

edit; What's Mandarin for "facetious?" :P

 

Tue, 06/25/2013 - 03:48 | Link to Comment Prairie Dog
Prairie Dog's picture

I'm too literal minded to appreciate the subtlety of Zerohedge humour. Of course. Now I see it. All those comments about Bernanke destroying the world and gold being the only hedge against hyperinflation... it was all satire. All the time you've been buying the recovery! Doh. That's why I'll never be rich like you guys.

Tue, 06/25/2013 - 03:25 | Link to Comment MisterMousePotato
MisterMousePotato's picture

I'm not the sharpest knife in the drawer, but "unwind" = "sell to."

?

Sell to who? Sell the fuck to who? Me? My wife? My 12-year-old daughter?

Wtf?

Sell to who?

Exactly?

Wait. I know. Julian Assange. Or Edward Snowden (for president). Or ...

To who?

Tue, 06/25/2013 - 04:13 | Link to Comment xtop23
xtop23's picture

Well if you're going to ask that question about China..... you have to ask it of just about any country on the planet trying to float debt, reallocate capital, or "keep the wheels greased."

China certainly isn't a paragon of fiscal prudence, and they may have a lot of institutions that go belly up as a result of lacking liquidity, but they have a boatload of collateral ( Gold / Treasuries / rare earths ) and an impressive manufacturing infrastructure to bolster confidence for investment.

Unwind also doesn't preclude the option of an outright or partial write down on debt, although I highly doubt that is the direction they would choose to pursue if there is any truth to rumors of an eventual alternative reserve currency in the Renminbi. 

If nothing else, and they're unable to "unwind / sell to", this path might at the very least keep the problem from growing exponentially worse. 

Which is more than can be said of the current course in the US. We bought 5 years by papering over the fuck ups, sure. But at what cost? 

And will the finale be anything short of financial annihilation as a result?

Tue, 06/25/2013 - 02:55 | Link to Comment RmcAZ
RmcAZ's picture

Crash? Almost green now.

Tue, 06/25/2013 - 03:00 | Link to Comment ebworthen
ebworthen's picture

Feral hogs rooting for Pop's nuts instead of truffles.

Make bacon out of them already!

The Beatles - White Album - "Piggies":  http://www.youtube.com/watch?v=WWBfD4XuIfU

Tue, 06/25/2013 - 02:57 | Link to Comment Prairie Dog
Prairie Dog's picture

Behold the miraculous surge!

Tue, 06/25/2013 - 03:01 | Link to Comment The Shootist
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They've retraced 5.8% on a fucking rumor of talk? How is that even possible? Honestly.

Tue, 06/25/2013 - 02:59 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Let them paint the tape into the openings and closes, just like back in 2008.

A Boy Plunger see opportunity in the VIX thunder.

Tue, 06/25/2013 - 02:59 | Link to Comment Prairie Dog
Prairie Dog's picture

Zerohedgies think China is showing the US how to operate a free market. Hee hee!

Tue, 06/25/2013 - 03:03 | Link to Comment IridiumRebel
IridiumRebel's picture

What? Me worry?

Tue, 06/25/2013 - 03:03 | Link to Comment laomei
laomei's picture

Eh, no one normal even bothers with the stock market here anymore.  Unless you have actual insider information, it's just a money losing venture.  The easy money was already all made from it, and then sucked out and tossed into hard assets.  Stock market has pretty much nothing to do with the economy here.

Tue, 06/25/2013 - 10:51 | Link to Comment Bananamerican
Bananamerican's picture

we have some chinks in our great wall of hopium over here too comrade...

Tue, 06/25/2013 - 03:05 | Link to Comment chump666
chump666's picture

The commies didn't circuit break, they bought in.  Futures up via HFTs.  Won't help yields though and USD bids. 

Dumb ass central banks.

Tue, 06/25/2013 - 03:05 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Where do you start, lifejacket... Check...... avoid the panic of crowds...... check.... If the Captain says don't panic, do.... check....The water will be cold and rough so rug up.... check..... carry real money in gold coins to pay your way out.... check.... first one out and away from the huddled and confused sheep survives... check

Why is the deck leaning so steeply and the lights going out? They said it was unsinkable because of its design of so many watertight compartments and Ben the captain said he had modern tools to fix any fault....... All I can see is air bubbles coming out and water going in.

Tue, 06/25/2013 - 03:09 | Link to Comment boogey_bank
boogey_bank's picture

Tyler,

in the comments to Your posts I have started to hear about an ipotetic euro dollar unique currency (I indeed don't remember the post)

could You please explain me (making a post about if U can) the dynamics of world currencies, seen from the perspective of globalization - antiglobalization forces at play? What is the role in the game of the following players?

1 central banks

2 governements

3 multinationals

4 local govs

Tue, 06/25/2013 - 03:33 | Link to Comment MisterMousePotato
MisterMousePotato's picture

I know I am naive, but ... didn't you leave out ...  people?

Tue, 06/25/2013 - 03:41 | Link to Comment boogey_bank
boogey_bank's picture

Indeed You're so naive...:-)

I think that even including local govs is pointless...

Tue, 06/25/2013 - 03:41 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

Wow, a +1 just for making me stretch to Romanian there. Rare that I don't grokk a word.

I'm not an expert, but I can assume the bottom line is that: once everything is binary, your local expression of currency doesn't matter much. Or, if we were being really futurist about the whole thing, you'd peg your global economy directly to energy (rather than the current easiest source, oil) and periodical rarity of elements, and work from there. Or: Digitised Energy Unit Supply EXchange run by... the Machines.

Take that how you like (I've not had coffee yet, and I'm known to be obtuse). Intellectual Capital would still function, and the old Geopolitical system would still be required due to the geographic location of certain things, but the base line crudities of protectionism and so on would be smoothed. If you got your hands on a copy of the TPP you'd be in a better position to think this through.

It's currently secret though. I strongly suspect Nation States are being gutted in favor of Corporations on the Power balance, however: USG is getting hounded at the moment, and it's no secret that most Corps. are now $cash heavy$ and in a position to ignore most localised laws.

 

 

You'll also note that with all the fun of the Spooky Fair, it's not getting any media attention, and it's being discussed right now.

Tue, 06/25/2013 - 04:09 | Link to Comment boogey_bank
boogey_bank's picture

Very interesting thoughts AEM,

Indeed many people see necessary a link between currency and energy... and the economy and finance peaked cause the oil peaked...

It would be interesting to dig further in the "raison d'etre" of the stealth birth of the TPP agreement and why china is not included in the deal.

What I further fail to know is this. If we have a big regional trade agreement and a regional currency, it's impossible for an emerging country included in the regional bloc to develop following the footstep of China? (such as having a weak national currency pegged to the currency of the country that they've planned to flood with goods and services).

...and what is the role of an ex developed country (like Spain for example) in a regional trade and currency bloc? (hint... to be slaughtered and then become a sweat shop nation?)....

but if it's so, what are the dynamics in those commercial blocs? Will we have nations that are tied to the trade bloc, but that exit and enter the currency bloc over time?

Tue, 06/25/2013 - 04:34 | Link to Comment boogey_bank
boogey_bank's picture

...however I'm afraid I'm becoming a taliban and a terrorist...

that's becouse I'm trying to cure myself by buying online herbs and paying it with bitcoin, fucking at the same time the bernank, the pharma and my pharmacist which I hate the most, he's a parasite that lives at the expense of others (celiac people for example). Nowadays Europe is full of people that are philantropist and care about what You do in order to cure yourself. They say: "don't buy drugs on the internet", they're not safe, and in the meantime you can see celiac people in those shops spending the whole salary in order to even eat food.

Tue, 06/25/2013 - 04:45 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

There's serious noises being made by elements (including Krugman) about a universal salary, especially once automation really takes off, as a way to stabilize obvious unemployment issues. Most people miss that Turkey, Brasil etc are being studied as test cases for youth unrest.

However, there's also really not very good news on the environmental front: I don't push it on ZH, as it's not a popular topic (the Belief formation on this monumental, and the people who crafted it were experts. There's some really brutal hooks in mind spaces most people don't mess with). But if you know where to look, and can read the science, it's not pretty. To all extents and purposes, all this fucking around with the market is largely foreplay at the moment, and positioning. (Which is why no-one cares if I frolic with the wolves one last time).

If I was to take bets, no-one expects another global player to develop in time; there's large evidence that China is being pushed here to see if it can make the grade (a lot of noise about them industrializing "too late" and so on, however, given their Will, they have a better shot at it than most cultures; pushing 350mil people into urbanization in the next 10 or so years is bold, to say the least). India is toast, it simply didn't move fast enough or purge the rot of old Empire bureaucracy. I suspect a large drive into Africa will happen, and you might even see Colonization 2.0, but with the masses from Europe etc trading their Intellectual talents for their new masters. The TPP is less a "partnership" than a vassal system to my jaded eyes, if you want the truth.

Commercial blocks? There's only Corporations now, the ultra-rich, and those with Nukes, realistically (depends if you view Romney - Obama as NSA vrs CIA // Corporate Business vrs Central State, or something else; it's certainly not anything to do with Left or Right). Populations will keep National identities to a degree, but culture and educational experience are probably deeper held. Bear in mind, this is a translation: I don't really view these concepts in the same manner you do, more than likely.

 

Then again, it could all collapse under the lack of original thought and movement. It's ironic: you only get 100 years or so, and you do love stasis. (To the watchers: that's the joke)

Tue, 06/25/2013 - 05:11 | Link to Comment boogey_bank
boogey_bank's picture

Commercial blocks? There's only Corporations now, the ultra-rich, and those with Nukes,

What currency will those elite use? And how the corporations will solve their problem? They always search for a country with a junk currency to invest in. Nonetheless we see the push for a global currency. Now in the world there is an epic battle between two factions with opposite needs. The investors and debt junkies who need a weak currency and the savers, who need a strong currency. 

Corporations can indeed do not care about currency: their risk is hedged among currencies and they also have passive income... but white whales should be worried if plancton is actually starving...

Tue, 06/25/2013 - 05:29 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

Again, I'm not sure you're getting it. Localized expressions of "currency" don't really matter much; again, you're not really thinking in a modern fashion.

Thought experiment: Let's say your DNA is mapped, encoded and used as an Identifier throughout a networked system. Communication, Social Sphere, Banking, Corporate Title, Levels of Security Clearance, Police / Military / Medical / Possession Insurance package, the whole 9 yards. It doesn't matter where you are on the Planet, as long as the systems around you recognize your pattern and can talk to each other. Order a coffee in Rio (no need for cash or even a CC, it's automatically deducted from your Corporate Account), access the Cloud to order a ticket (or, more likely, have a semi-autonomous algo Pixie do it for you), board (no customs, your DNA has already been cleared), get off in Johannesburg for a face to face meeting (security conscious, no snoopers), but of course, both you and your partner are wearing lens tech that will record (Legally Binding NDA enacted mutually) for your Corporation and you've already been briefed (with your algo Pixie helpfully showing the limits to your bargaining parameters, as per the Corporation's desires)...

 

And so on and so forth. This is all SF, but it's also all perfectly possible (well, almost - 5 years tops, Commercially) in our current world.

 

TL;DR

Making money by arbitrage of currency differences is terribly inefficient, not particularly useful in a modern world, and is prone to large crashes as we've seen. HFTs can handle it.

Capice?

Tue, 06/25/2013 - 06:01 | Link to Comment boogey_bank
boogey_bank's picture

Thought experiment:...

 

W O W  !!  :-)

universal salary vs corporation account

I would only hope that those with nukes will nuke corporations and ultra rich

this is SF too, but it's technically possible

... and however 'Localized expressions of "currency" ' as You call them , DO matter... It's a matter of life or death for millions of people (look at Weimar, Zimbabwe, Jugoslavia 80, Argentina 2003 and so on and on)

Tue, 06/25/2013 - 07:24 | Link to Comment Setarcos
Setarcos's picture

Guess who have the nukes?

I'll give you a hand: Corporate America.

What is "technically possible" about the US military industrial complex nuking itself?

Do you not know that, back in the 1940s, the Atomic Bomb was developed by "corporations and the ultra rich", hand in hand with politicians in Washington?

Why would corporations nuke theyselves?

Tue, 06/25/2013 - 07:36 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

Please note: I'm not endorsing any of this, nor am I in a position to be divulging "confidential" material. I'm merely stating what's being discussed around the sphere, as it were, in a coffee addled fugue.

Oh, and there's no need for it to be "universal salary vs corporation account". The two can co-exist quite easily, and even with grey / black markets as well. The future is here, just not evenly distributed as the quotation goes.

Tue, 06/25/2013 - 06:00 | Link to Comment Setarcos
Setarcos's picture

I get it, having been on this planet for 70 years and living through/reflecting on developments towards global financialism, which became really pronounced during the 1980s via the Chicago School, Reaganism, Thatcherism (neo-liberalism) and so on.

But I long-since gave up trying to explain to people that it was a fools errand to hark back (neo-classicism) to a construct of economic activity that Adam Smith came up with back in the 1700s ... besides: it does extreme disservice to Smith, let alone ignoring the works of Ricardo and Marx on early Capitalism.

Yep I have bored most to death already, but I will persist that to the extent that Capitalism and Free Trade ever existed in the real world, NOW it is all about corporate, monopolistic financialism, e.g. corporations like GE having finance divisions.

Tue, 06/25/2013 - 06:08 | Link to Comment boogey_bank
boogey_bank's picture

I know, I know, A Smith capitalism is dead, but I neither want to make any futile rant nor  to fight windmills, I want only to better understand this modern (medieval) world in order to survive...

Tue, 06/25/2013 - 07:11 | Link to Comment Setarcos
Setarcos's picture

Join the club.

The top 0.01% clearly have not thought it through to when their apparent 'wealth' is worthless and when too few plebs are left to mow their remnant lawns.

The best 'answer' for you I can can come up with is reference to the demize of the Roman Empire, i.e. a protracted period of chaos lasting about 1000 years ... assuming that a nuclear WW3 does not eliminate any future for humanity.

If you are a Libertarian (which I am NOT), then go for the idea that you can be totally self-sufficient by buying farmland, seed stocks, ammunition, etc..

Good luck (to us all).

 

Tue, 06/25/2013 - 06:28 | Link to Comment Harbanger
Harbanger's picture

Wow. That makes 1984 look like freedom.  I don't know if it would be that easy to actually get everyone on board with that.  In practicality it's impossible to go full electronic currency without there being some form of black market currency for people to exchange.  Humans just don't function that way with each other on a small scale, never mind a global scale.  Even inmates have some form of prison "currency" they agree on.

Tue, 06/25/2013 - 06:52 | Link to Comment boogey_bank
boogey_bank's picture

Just to keep going full on science fiction,

what about a world with no central banks and no state issued currency?and a p2p currency instead? no more banks and zopa instead?

Further I'm not interested in corporations accounts becouse I'm outside the elite fence. I would be interested in studying the smugglers currencies, maybe a global electronic standard is already born...

...if AEM is right and the corporations will inherit the world, what the implications on Exter pyramid? Bonds no more near the cusp?

Tue, 06/25/2013 - 07:23 | Link to Comment Setarcos
Setarcos's picture

Your vision is not SF, it is fairy land.  Sorry!

Well except for the total collapse of our current world - similar to dinosaur extinction - and MAYBE, within a few million years, a species arising which is FAR wiser than so-called "homo sapiens" ... what hubris to call ourselves 'wise'!!!!!!!!!!!!!!!!!!!!!!

Now some future, possible species IS science fiction of course; but to expect central banks, etc. to voluntarily do away with theyselves is off with the fairies.

Tue, 06/25/2013 - 07:51 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

Grey / Black economies are priced in, and in fact make the system work better. All that matters is that there's a legitimate 'currency' that's unchallenged and in fact, unchallengeable. It's basically how the dollar works in the word anyhow (given that 1/3rd of all bills are not in circulation in the USA, hint hint).

Look at America and the 1980's and the Drug War (mass spraying of rainforest / crops via Monsanto Roundup etc): do you seriously think that they couldn't crush Mexico's little issues if there was the willpower to do it? You have 100k+ battle hardened troops trained for urban combat in Iraq at your disposal. You have wiretaps and algo modelling allowing you to map out the structures of drug gangs. You have tech up the wazoo allowing you to monitor it all 24/7, real time, and drones that could wipe out drug deliveries across your border at all times.

 

Of course, there's naive hope for humanity and it'd be great if everyone made a giant jump forward (without the Maoist overtones) toward a more complex consciousness, but, realistically, a lot of people simply aren't wired for it. I can only hope I still am; ZH tends to have a corrupting influence.

Tue, 06/25/2013 - 05:32 | Link to Comment Setarcos
Setarcos's picture

+++

I think that you have nailed it.

Tue, 06/25/2013 - 03:28 | Link to Comment Yen Cross
Yen Cross's picture

    The Shanghai closes down .2% on baffle with BSium.

Tue, 06/25/2013 - 03:47 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

Yeah. I do like the nice parabolic dive on the 1 yr chart.

Tue, 06/25/2013 - 03:58 | Link to Comment MaxThrust
MaxThrust's picture

The FED agents bought into the Shanghai index to hold it up, by letting the china market correct the Chinese will crush the Zionist banking industry, which is right now teetering on a nyfe edge.

Tue, 06/25/2013 - 04:00 | Link to Comment WTFUD
WTFUD's picture

See the blind man he's shooting at the world Bullets flying they're taking toll. . . . If you've been bad better bow your head and wait for the ricochet. .
Deep

Tue, 06/25/2013 - 06:42 | Link to Comment macambaman
macambaman's picture

Dead Chinese cat bounced.

Tue, 06/25/2013 - 07:35 | Link to Comment Rory_Breaker
Rory_Breaker's picture

Only if they shave it first.

Tue, 06/25/2013 - 10:47 | Link to Comment PFO
PFO's picture

Hey Dawgs,

Same as yesterday ya'll being too hard on our Chinese brothers & sisters, so let's just listen to some good ole 'merican country music:

http://www.youtube.com/watch?v=oSy99eej7HU

Bruce actually sums-up our treatment of Chinese for the past 150 years. Yep, just another whore for the:

satanic-feminist-pedophile-savage capitalist-consumer credit-culture of death

Tue, 06/25/2013 - 11:30 | Link to Comment DowTheorist
DowTheorist's picture

There was a better way to know that a bear market was in full gear well before the -20% decline from the highs.

On March 13, 2013, the Dow Theory signaled a primary bear market for Chinese stocks. So the Dow Theory gave advanced warning more than 3 months and +12% before the carnage set in.

 

http://www.dowtheoryinvestment.com/2013/06/are-chinese-stocks-in-bear-ma...

Tue, 06/25/2013 - 11:34 | Link to Comment PFO
PFO's picture

Aurora Ex Machina

Great analysis:

“You have tech up the wazoo allowing you to monitor it all 24/7, real time,

and drones that could wipe out drug deliveries across your border at all times.”

But the technology is actually more incredible. While hitch-hiking thru the Central California coast in 96' I got a ride from a laser-engineer working at Vandenberg AFB and he told me the following:

‘We've developed lasers that can detect the color-spectrum of any substance on earth. Last year we calibrated the machine for the ‘color of cocaine’ and hung it from a chopper hovering 2,000' above the Mexican border.

Sure enough a low-flying plane comes by and the laser detects the cocaine color-code. So a Blackhawk forces it down and the cargo and plane are seized, but the crew is transported to the border and kicked back into Mexico.’

I asked why and he said no court in the nation could accept the way the evidence was acquired, so they would walk anyway. I then asked how the laser 'saw' the cocaine. He replied it was on the door handle, so the mules loading the plane must have had some on their fingers.

Let's see, plane flying at +120 mph blows most of dust off fuselage, but a few mili-grains of ‘coke’ sticking to the door-handle gets ‘spotted’ by a laser several thousand feet away?

Beam me up Scotty . . .

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