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China Soars Most Since 2009 After Government Threatens Short Sellers With Arrest, Global Stocks Surge
Here is a brief sample of some of the measures the Chinese government and the PBOC have unleashed in just the past ten days to prop up the crashing market include:
- a ban on major shareholders, corporate executives, directors from selling stock for 6 months
- freezing more than half (1400 at last count per Bloomberg) of the listed companies from trading,
- blocking fund redemptions, forcing companies to invest in the market,
- halting IPOs,
- reducing equity transaction fees,
- providing daily bailouts to the margin lending authority,
- reducing margin requirements,
- boosting buybacks
- endless propaganda by Beijing Bob.
The measures are summarized below.
But it wasn't until last night's first official threat to "malicious" (short) sellers that they face charges (i.e., arrest), as Xinhua reported yesterday:
[Ministry of Public Security in conjunction with the recent Commission investigation of malicious short stock and stock index clues ] correspondent was informed on the 9th morning , Vice Minister of Public Security Meng Qingfeng led to the Commission , in conjunction with the recent Commission investigation of malicious short stock and stock index clues show regulatory authorities to the operation of heavy combat illegal activities.
And SCMP confirmed:
China’s police will investigate clues pointing to potentially "malicious" short-selling of Chinese shares, state news agency Xinhua says on Thursday. The investigation will allow authorities to "punch back" against unspecified illegal activities, Reuters reports Xinhua saying on its official microblog, citing unidentified sources.
... that the wall of Chinese intervention finally worked. For now.
And since this is all about one thing, the stock, market, it is worth noting that the Shanghai Composite Index had dropped as much as 3.8% to a 4 month low before the news that the cops were going to arrest anyone who used a wrong discount rate in their DCF, when everything suddenly took off, and the SHCOMP closed a "Dramamine required" 5.8% higher, the biggest daily increase since March 2009!
"As China beefs up its efforts to rescue the market, with even the public security ministry involved, market sentiment is recovering slightly from a panicky stage earlier," Shenyin Wanguo analyst Qian Qimin says by phone
This is how some other Chinese markets fared: CSI 300 +6.4% led by industrials, consumer staples; the Shenzhen Composite Index +3.8%; all ChiNext shrs trading today were limit up a day after virtually the entire market was locked limit down.
The best and briefest summary comes from China Southern Fund Management chief strategist Yang Delong, who said that the government efforts "hit the right spot." Well, yes, when you threaten to arrest sellers, it does tend to have a short-term effect. The only escalation from there is arresting anyone who doesn't buy which in turn would promptly lead to this.
"I shorted" pic.twitter.com/Q3FzGh7gVC
— zerohedge (@zerohedge) July 9, 2015
Elsehwere in Asia, the Nikkei 225 closed +0.60% after tumbling 3.2% earlier in the day, as the Chinese "anti-selling measures" spread and "inspired' confidence, with the ASX 200 unchanged and weighed by materials as iron fell to a record low. Across the board equities did pull off worst levels as gains in Chinese stocks sparked an improvement in confidence, which also weighed on JGBs, with losses exacerbated by a weak 30-year JGB auction which drew the lowest b/c since 2004.
The Chinese gain promptly rippled through Europe as well, which now appears more focused on Asia than on Greece, and European shares rose most since July 1. Ironically, for all the talk of an imminent deal, overnight none other than famous Grexitologist, Citi's Willem Buiter allowed us a 2011 deja vu when he joined JPM in saying that Greece’s exit from Eurozone is now the "base case" and most likely outcome, either via short-term exit in next few months or over next 1-3 years.
Curiously the Greek bond market seems to agree as can be seen by the price action in Greek 2 year bonds.
In any event the euphoria over Chinese central planners threatening with bodily harm in what is clearly one of the last steps before all control is lost, is enough to offset the unpleasant encroaching of reality. One wonders just what measures the US itself will take when faced with China's bursting-bubble predicament.
For now, however, after US stocks tumbled yesterday just before the NYSE "unexpectedly" closed for nearly 4 hours a day after 70% of Chinese stocks were frozen from trading, futures right now are set for a 1% open.
Somehow we doubt the NYSE will break today.
Newsflow has been relatively light in today's European session, thereby seeing equities (Euro Stoxx: 1.8%) take their lead from their Asian counterparts. In terms of US specific equity news, yesterday saw Alcoa officially kick off earning season after reporting Q2 Adj. EPS USD 0.19 vs. Exp. USD 0.22 and Q2 revenue USD 5.90bIn vs. Exp. USD 5.80bIn. Looking ahead to today, notable US earnings include Pepsi and Walgreens. With the state of play in Greece seeming to be on hold ahead of the weekend, Bunds have been relatively unmoved this morning, with fixed income markets seeing little price action and today's only notable auction a US USD 13bIn 30yr bond auction.
FX markets have seen a reversal of yesterday's moves in key pairs, with EUR and JPY weaker this morning, seeing USD/JPY retake 121.00 to the upside in an unwinding of safe haven flows after Chinese equities recovered some of yesterday's losses. The USD has also seen a reversal of yesterday's losses to trade higher this morning by around 0.2%.
Improved Chinese sentiment boosted the commodity complex with WTI (+0.73), Brent Crude (+0.59), with metals also benefitting from the improved Chinese sentiment to rebound from recent weakness. This gold trading higher (+0.2%) as it bounced back from March 17th lows and copper (+0.9%) also benefitting after reaching its lowest level since 2009 yesterday. UBS have revised its avg. platinum price forecast for 2015 to USD 1160 /oz vs Prey. USD 1280 /oz and its Palladium avg. price forecast to USD 770 /oz vs Prey. USD850 /oz. UBS also lowered their long term Platinum price forecast to USD 1600 (RTRS).
Looking ahead, the rest of the day sees the BoE rate decision, US weekly jobs numbers and comments from Fed's Kocherlakota, Brainard and George.
In summary: European shares extend gains, rise most since July 1, with autos, financials outperforming; U.S. equity futures rise along with gold, oil, dollar. Asian stocks rise most since June 23. Iberian, Italian, French stocks lead outperformers among European bourses; yields on Dutch, German, Greek, U.K. 10-yr bonds rise; Spanish, Portuguese yields fall. U.S. jobless claims, continuing claims, Bloomberg consumer comfort due later
Market Wrap
- S&P 500 futures up 1% to 2059.3
- Stoxx 600 up 1.5% to 378.6
- US 10Yr yield up 5bps to 2.24%
- German 10Yr yield up 2bps to 0.69%
- MSCI Asia Pacific up 0.7% to 140.7
- Gold spot up 0.3% to $1162.4/oz
- Eurostoxx 50 +1.7%, FTSE 100 +1.1%, CAC 40 +1.7%, DAX +1.6%, IBEX +2%, FTSEMIB +1.7%, SMI +1%
- Asian stocks rise with the Shanghai Composite outperforming; MSCI Asia Pacific up 0.7% to 140.7
- Nikkei 225 up 0.6%, Hang Seng up 3.7%, Kospi up 0.6%, Shanghai Composite up 5.8%, ASX up 0%, Sensex down 0.4%
- Euro down 0.39% to $1.1034
- Dollar Index up 0.23% to 96.51
- Italian 10Yr yield down 5bps to 2.17%
- Spanish 10Yr yield down 6bps to 2.17%
- French 10Yr yield down 0bps to 1.12%
- S&P GSCI Index up 0.8% to 412.6
- Brent Futures up 1.2% to $57.7/bbl, WTI Futures up 1.5% to $52.4/bbl
- LME 3m Copper up 1% to $5577.5/MT
- LME 3m Nickel up 2.6% to $11240/MT
- Wheat futures up 0.6% to 581 USd/bu
Bulletin headline summary from RanSquawk and Bloomberg:
- Chinese markets staged a relief rally to see the Shanghai Composite post its largest one day gain since 2009 following a slew of additional measures by Chinese officials to curb losses coupled with encouraging CPI data.
- Improved Chinese sentiment boosts the commodity complex, with gold and copper coming off their multi month lows.
- Today sees the BoE rate decision, US weekly job numbers, EIA NatGas Storage change, comments
from Fed's Kocherlakota, Brainard and George as well as earnings from Pepsi and Walgreens. - Treasuries decline amid gains in stocks and commodities, Greece headlines; week’s supply concludes with $13b 30Y bonds, WI 3.020% vs 3.138% in June.
- The selloff in China’s stock markets halted after regulators late Wednesday banned major stockholders from selling stakes; more than half the country’s listed companies have been suspended from trading
- Templeton Emerging Markets Group called the stock sale ban an act of “desperation”; UBS Wealth Management labels it “extreme”; Wells Fargo Funds Management says it just “postpones the inevitable”
- China’s securities regulator suspended reviews of IPOs and other share sales, people familiar with the matter said
- With a cacophony of voices predicting a possible exit of Greece from the currency, Tsipras has until Thursday midnight to present an economic plan that includes spending cuts in exchange for a new bailout
- Merkel is doubtful he’ll deliver, and is now willing to accept a Greek exit, according to two govt officals familiar with her strategy who asked not to be named
- Draghi suggested the Greek debt crisis is getting increasingly hard to fix, speaking hours before the ECB maintained its freeze on extra aid for the country’s banks
- An agreement to curb Iran’s nuclear program could create a bonanza for U.S. defense contractors who already are benefiting as the Obama administration tries to assuage Israeli and Gulf Arab concerns by cutting deals for more than $6b in military hardware
- Sovereign 10Y bond yields mostly higher; Greek 10Y yields 19.439%. Asian stocks mostly higher. European stocks and U.S. equity-index futures fall. Crude oil, gold and copper higher
US Event Calendar
- 8:30am: Initial Jobless Claims, July 4, est. 275k (prior 281k)
- Continuing Claims, June 27, est. 2.250m (prior 2.264m)
- 9:45am: Bloomberg Consumer Comfort, July 5 (prior 44)
- 1:00pm: U.S. to sell $13b 30Y bonds in reopening
DB's Jim Reid completes the overnight event summary
If anyone was under any illusions that we're living in free global markets then China's recent policy actions should be a reminder that we're not and haven't really been for several years. Global financial markets are not really operating under capitalism but then again I'm not really sure I know what you'd call the system we are currently living under.
A simplistic analysis of the problems over the last couple of decades is that bubbles are repeatedly being inflated by policy action and then never allowed to deflate properly when they turn. Whether that be a huge Greek government debt pile that the authorities have been too scared to see default over the last few years or whether that be a Chinese equity market in apparent free-fall, there is a link. These and numerous other examples in recent years leaves huge sub-optimal resource allocation issues throughout the global economy and a need for more and more stimulus to retain stability. To be fair China is only doing what the West did a few years ago when they banned the shorting of things like various company equities and sovereign CDS. However China does seem to be raising the bar in terms of intervention techniques. One such example came yesterday after the China close with the news that the China Securities Regulatory Commission has banned major shareholders (with stakes of more than 5%), corporate executive and directors from selling stakes in listed companies for six months. A truly breathtaking initiative.
For us the China situation is more potentially worrying than Greece for global markets but overall it fits with our view of intervention and high liquidity being needed across the globe for many years to come. Don't be surprised by more Chinese major policy initiatives over the coming days. If Greece does go towards the exit door, expect the ECB to further aggressively intervene.
Looking at the follow through this morning, there's been more volatility but there are perhaps some signs of the various measures of the last couple days having an effect with the Shanghai Comp (+1.30%), Shenzhen (+2.93%) and CSI 300 (+2.43%) currently in positive territory. The Shanghai Comp in particular initially opened nearly 4% lower only to then swing to a 2.5% gain in the space of an hour before then settling down. According to Bloomberg over 1400 companies are still suspended from trading on the mainland exchanges. Data for the region was almost overshadowed with so much of the focus on the equity moves. However, China’s CPI print for June showed a modest +0.2% rise to 1.4% yoy and was slightly above market expectations. PPI continues to remain under pressure however, with the June reading moving even lower to -4.8% yoy (vs. -4.6% expected) from -4.6%.
As we discussed over the last few days, the sell-off in China has also had a knock on impact on parts of the commodity market. Although rebounding slightly yesterday, Copper had struck a 9-year low on Tuesday, falling as much as 18% off the highs of early May. Iron ore has been another casualty of the sell-off with the commodity falling over 30% from the highs in June (including a 10% crash yesterday) which has had a knock on effect on Australian mining names in particular.
Returning to other markets this morning, the Hang Seng (+3.43%) is benefiting from the rebound in China but it’s a relatively weak session elsewhere with the Nikkei (-1.28%), Kospi (-0.08%) and ASX (-0.39%) all down. S&P 500 futures are around half a percent higher while 10y Treasury yields have moved up 3.4bps.
Over to the latest on Greece. Yesterday we learnt that Greece has submitted a request for a 3-year bailout program from the ESM as had been widely expected. In the letter, the Greek government said that it would detail a ‘comprehensive and specific reform agenda’ by today. There were some suggestions that the letter carried some softer language, including rhetoric around softer demands for debt restructuring however it will be the finalized list of reforms from the Greek side which will ultimately decide which direction we head over the weekend. Outside of the news of the formal loan request, a European Parliament session yesterday which included Greek PM Tsipras was said to have been stormy and led by more defiant rhetoric out of Tsipras. Elsewhere we also heard that Greek banks will stay closed through Monday and extend capital controls in light of Sunday’s summit, while the ECB also kept the ELA cap unchanged.
The subject of Greece was also a focus in the FOMC minutes with the text showing that ‘many participants expressed concern that a failure of Greece and its official creditors to resolve their differences could result in disruptions in financial markets in the euro area, with possible spillover effects on the US. Clearly a lot has happened since the last FOMC meeting last month with regards to Greece. We did however get a hint as to the current Fed thinking through San Francisco Fed President and voting member Williams. The Fed official played down a lot of the concern however, saying that the risks emanating from Greece are ‘unlikely to overturn the otherwise strong fundamentals’ of the US economy and that the economic impact on the global economy remained an ‘unlikely tail risk’. Williams also said that the ECB has the ‘means and will’ to limit the fallout.
The remainder of the minutes offered few surprises on the whole. Officials saw ‘economic conditions as continuing to approach those consistent with warranting’ a start to the normalization process, with members agreeing to make decisions on the target fed funds rate on a meeting-by-meeting basis while there was also some mention of members seeing room for additional progress in reducing labour market slack.
As well as his more conservative comments around Greece, the Fed’s Williams reiterated his forecast for 2015 liftoff and didn’t change his expectation of two hikes this year, saying that ‘every FOMC meeting is on the table’. Williams also noted that the employment goals ‘is in sight’ while there is ‘still some way to go on inflation’. Elsewhere and with regards to China, Williams said that he is ‘a lot less concerned’ about China’s near term outlook, while optimistic that they have the ‘will and the leeway to take the necessary policy actions’.
There was little in the way of market reaction following the minutes. Treasury yields had already declined in the run up and the 10y benchmark eventually closed 6.6bps lower at 2.193%. Fed Funds contracts took another leg lower with the Dec 15 (-1bp), Dec 16 (-4bps) and Dec 17 (-5bps) contracts falling to 0.245%, 0.885% and 1.550% respectively with the latter now creeping in on the YTD lows in yield. We still think the Fed won't hike in 2015 but market pricing is increasingly reflecting this possibility. Elsewhere, US equities had a weaker session with the S&P 500 falling 1.67% while the NYSE halted trading for over 3 hours following a technical malfunction. Oil markets were mixed with Brent (+0.35%) a touch higher but WTI (-1.30%) sliding now for the fifth consecutive session while Gold finished +0.27%. Consumer credit data for May came in below expectations at $16.1bn (vs. $18.5bn expected) but we did see a near $1bn upward revision to April’s print to $21.4bn. Elsewhere, Alcoa unofficially kicked off earnings season (reporting after the closing bell) in the US with a miss. The earnings calendar is set to kick into gear next week when we see the US banks reporting so along with Greece, China, and the Fed (Yellen's semi-annual testimony) there’ll be plenty to keep an eye on.
Closer to home yesterday, the impact from the turmoil in Chinese equities appeared to be relatively short lived in European markets as the Stoxx 600 (+0.04%), DAX (+0.66%) and CAC (+0.75%) all finished up, while peripheral markets largely outperformed with the IBEX and FTSE MIB +0.81% and +2.64% respectively. With markets swinging once again back to hope of progress in Greece, peripheral yields moved tighter with Italy (-5.0bps), Spain (-3.6bps) and Portugal (-12.2bps) all having a decent day. 10y Bunds moved 2.9bps higher to 0.669% while Greek yields surged wider, led by the 2y (+241bps) part of the curve.
Over in the UK, DB’s George Buckley noted that yesterday’s Budget (the first by an all-Conservative government since the late-1990’s) was long on measures. George summarised that what was announced amounted to a significant increase in tax-take/spending outlays for the Treasury, but it is important to see this for what it is. George believes that rather than a meaningful tightening in fiscal policy, we should view this as a ‘fleshing out’ of the austerity envelope that has already been announced and as a result George believes that this has little impact on when the BoE will begin to raise rates, with May 2016 still favored. 10y Gilts closed +5.9bps higher yesterday at 1.891%.
In terms of the day ahead, Greece and China will likely attract the bulk of the headlines again. Data wise in the European timezone this morning we’ve got German trade data due as well as the UK BoE decision at midday. Its quiet this afternoon in the US with just initial jobless claims due, although the Fed’s Kocherlakota, Brainard and George are all due to speak today.
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Dear Leader just had another idea
Kinda like Obamacare....you have to buy it.
If you feel like you're a trapped rat.....that's because you are.
You read my mind ;-)
So essentially China wants to tell people what they can do with their property, not lease stocks and enter into a mutually agreed upon contract. It doesn’t sound like they are ready to be the next light on a shining hill to me, nor give up any control, which is necessary for a gold backed Yuan that many think is coming.
Dead cat bounce.
Falling knife taking a short break from falling
That's funny, I don't remember "stocks around the world" falling with China...so why are they now rising with China?
Fuck you banker assholes, and your media minions.
/My time. It is coming.
.
Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaaaaaaaaaa......
What a freaking farce.....
In the USSSSSSA they just break the market....
Today's opening bell should be something....futures green, current green, DAMN yesterday's RED....
might as well just ban all human trade and interactions and go with 100% algo-bots.
Getting there faster than the speed of light....lasers, masers and tasers.....
Sounds like it's time for a good old suckers rally.
It just shows that the Market works best when the Government and Bankers combine their resources for their mutual benefit.
The markets depend on two things,
Confidence, and
Volatility
They each play off of each other. They can't allow the markets to collapse too far as it will kill all confidence. They key is to fall enough to create real buying opportunities. People cannot resist something for nothing and a quickly ramping market is too good to resist. But they also are fearful as their rational mind still understands that fundamentals don't matter and it can all go to shit quickly. This emotional aspect creates the volatility that creates the opportunities. Many of the gamblers perceive they have lost a lot, and the only way to get it back quickly is to get back in.
A good casino owner will clean the pockets of the arrogants who think they can outsmart the casino, yet they allow others to win big to keep that hope alive. Casinos absolutely construct their games to create a predictable return. They know that they can't clean out everyone every day as eventually no one would return. Winners are necessary. So we will have the return of winners.
This is a supply and demand market that is not dependent upon utility or consumptive demand, but on emotional demand. The supply is controlled to create the demand and it is most definitely a business. It will not deliberately self destruct and will prosper as it always has unless governments or intelligence intervenes.
When the financial/gambling industry encompasses this much of the world economy, it is not subject to fundamentals. Far too many people are dependent upon the fleecing of others to allow it to stop. The markets will not collapse in a conventional sense. We will simply see our standards of living decline due to continued loss of productivity while the markets are being hollowed out through devaluation of currency. Once all productive wealth has been secured by the few at the top, the "markets" will just become another game of chance where the winnings are measured in tokens of no real value outside of the casino.
We are watching the wrong hand. What we should be watching is who is gaining control of everything we must have. everything of real value...and that isn't stocks.
Yoomusta buyamoor stocks!
So I guess everything is fixed then.
Just goes to prove every banker likes to keep his kidneys and his life above making a big profit.
The Chinese leaders make a very persuasive argument, eh.
Yes, it’s not a recession/depression it’s a robbery. It’s the transfer of even more power/wealth from the majority to the owners/Oligarchs (the 0,001%).
"What we should be watching is who is gaining control of everything we must have."
Sheldon Adelson .. (call him a pseudonym, like Tyler Durden, who reprsents all the perps)
https://youtu.be/jE2_qmlKFVU
Black Swans can really throw a wrench in someone else's plans ..
http://www.veteranstoday.com/2015/06/18/wanta-black-swan-white-hat-on-am...
The guy speaking in Damascus, is the same reporting the last link posted. He also works closely with the primary. Actually was ordered to oversee security for him (which is reported to be equal if not more than GHWB). Paradigm shift is in progress ..
And while we are at it, have you heard of The Vanguard Group?
https://app.box.com/s/769a4o7oixga7au2iz0a7nnxouicngrq
Yeah Mon!
Wait, what is the purpose for the stock market again?
The purpose of the stock market, is to allow people to [get rich by] selling 'fractional ownership of their company' to others (sheeple), for more than what it is worth to them....most of the time..way way way way more...then, you hope that the train of sheeply behind the intial buyers, are willing to even pay more.
I'm old enough to remember the good ole days, when the markets in the US led the world markets up/down.......as for me, I don't like the fresh scent of decline in the air in the mornings.
CrowdFunding
aka......
China QE #1
"Charlie Don't Sell!"
- Lt. Col. Kilgore - "Apocalypse Now"
"IS THAT ALL YOU GOT"
Lt. Dan - "Forest Gump"
Whew...It is all fixed now.
Everything is back to awesomness. Major awesomeness. Could not be more awesome.
Thank God for our capable and awesome Central Controller oligarchs. Without them ruling us we might have to deal with Freedom.
Everything is awesome people..
Mao Mutual Funds. They're Grrrrrrrrrrrrreat!
Have a great day!
Stop the press! Did you just say Freedom?
TERRORIST!
not just awesome, but <in a high pitch girly voice> OOORRRRRRRRSOME!!
Looks like the Fed's going to get their rate hike(s) come hell or high water....maybe both.
They did you just didn't see it yesterday at 1:30PM EST
The hell I didn't.
FUBAR-NOMICS TM
I think China ‘telling’ happened way back there with the implementation of forced abortion.
This can’t happen in the U.S.. We have Freedom Zones!!!
Uhh, they are Communists...
Define Communism
There will never be a gold backed yuan. Other countries and money interests would quickly expose or exploit redemtion and the Chinese would close their gold window eventually as the US did. Their accumulation of gold allows them a place at the table and to be a member of Dollar, Inc.
China now owns part of the FED system as does the UK and Germany (Banks of course). But China owns it's nation state bank and it is a gov institution, while in the US and UK it is a private institution.
http://www.federalreserve.gov/SECRS/2008/March/20080303/ICP-2008108/ICP-...
http://money.cnn.com/2012/05/09/markets/china-banks-us-expansion/
I thnk you're right. A gold-backed currency would run into problems in a global marketplace, since it will be traded for non-gold currencies. If gold was (is?) valued in that marketplace, it would get Greshamed out as traders rushed to substitute paper instead for exchange in order to hold their gold currency.
Currency is for the masses, who in general lack wealth. Gold is for those who have wealth and want to maintain it against market movements that affect the masses. Neither China's oligarchs nor anyone else in power is going to be eager to make their reserve investment a mainstream form of exchange, because it would undermine their reserve/hedge strategy.
"a ban on major shareholders, corporate executives, directors from selling stock for 6 months"
Well that ain't going to happen here and even if by some strange chance that it does it still would not prevent the big boys from selling, there is no crime where there is no Law and there is no law when there is no punishment. I mean they can pass all the fucking laws they want but unlike China we don't enforce them at that level.
China thought about just fining short sellers in a graduated way, say 1, then 2, then 2.5% of their AGI. Redistribute the fine money to people who do nothing. However, they read the bill and discovered that fining people might not work while creating an entitled class of freeloading liberals like California has. So instead they chose simply to go after the jugular and imprison people for actually practicing capitalism.
"This is not who we are, we know fuck alound here" President XI Jinping said.
Hey kids. This is what you call a "command economy".
China still has communism in its soul and this is what happens to holders of capital.
the beatings will continue until morale improves... wow, that actually works
So simple even a commie could do it.
Thank Buddha for free markets!
Why would anyone go back into this market when you might not be able to sell when you want to?
Cuz the govt just guaranteed no downside.... I think this CommieCapitalism may catch on, just wait for the executive order.
So you would be happy to sit there with money tied up in Chinese shares and watched while global stock markets crashed, unable to salvage anything?
"So you would be happy to sit there with money tied up in Chinese shares and watched while global stock markets crashed, unable to salvage anything?"
Silly boy, you are so 20th century! This is the New Normal!
Crash? didn't you hear the man Terry? They just outlawed Gravity
I can hear the harps and angels singing already.. all markets floatings pleasantly on white puffy clouds in the blue heavens and smiles and kool-aid for all!
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Cause the world is run by a bunch of sociopaths ... ''''''Sociopaths are masters at influence and deception. Very little of what they say actually checks out in terms of facts or reality, but they're extremely skillful at making the things they say sound believable, even if they're just making them up out of thin air.'''''Sociopaths are incapable of feeling shame, guilt or remorse. Sociopaths seek to dominate others and "win" at all costs. Thing is .. they no longer sound believable . .but they will continue to lie, cheat and steal and then go to war .. .. its coming ... this is a cycle and a pattern and we are on course. Prior to war . they will have a hissy fit and do what they can to FORCE people into debt and their various insane schemes.. it IS CREEPY .. done by the biggest creeps in human history.
"Buy all these things! We will arrest any & all traitors! Buy all these things!"
pick any country,,soon ;)
Gravity is hereby suspended indefinitely by your Fearless Leaders.
Any serfs jumping from tall buildings, will now be immediately arrested for trying to contradict the Authorities.
Carry on - - - Big Brother is watching.
Jade Helm is right around the corner. How sucky would that be if everybody gets locked up in stock buying camps.
It will be interesting if that little exercise elicits popular mockery rather than cooperation.
In the famous words of Bugs Bunny:
"I never studied the laws of gravity!"
When can we arrest the people at CNBC, Goldman and the Fed?
Eat yer equities!
Bloat On - Cheech and Chong
How do you calculate VaR when half of your portfolio is unsalable?
What happens if you need those funds to cover debts?
Like a margin call?
Q: How do you calculate VaR when half of your portfolio is unsalable?
A: unsellable means price is 0
Banks: "Our model says otherwise."
No. Since the Chinese copy everything we do, I'd say the answer is pretty obvious: mark-to-unicorn. We did it in March 2009 when mark-to-market was eliminated. Put whatever number on it you want. Put it at par. Hell, put it over par if you want. Nobody's going to ask any questions.
Is suspension of mark to market still in effect after six years of ZIRP? Surely that's a disaster waiting to happen as all will mask the true value of their holdings by overestimating them year after year, until only the want of a nail will be enough to shatter the illusion. With 20+ straight quarters of Congress rubber stamped and sanctioned Arthur Anderson accounting the true state of company balance sheets are certainly far worse than the numbers announced to the public. Of course, it's not like that hasn't happened before, but in times past, people went to jail for that sort of thing. Now the US is a kangaroo court.
https://www.youtube.com/watch?v=mdeo7Q2E5cE
Well not only that, but you can reflate your mortgage losses by adding 4T in inflation bucks via QE and ZIRP. This guarantees trickle down thru equities and back into your dead money real estate holdings which you can now unload without taking too big a hit-while completly fucking over every American saver by paying them zirp. Banks just suspended acceptable accounting standards until they could flush 4T in funny money into the system- using some of that same funny money to suppress PM's and bond yields also.
Brilliant really. As much as I hate the fuckers.
I'm damn glad I wasn't drinking anything when I read the phrase "mark-to-unicorn," or it would have sprayed out of my nose and all over my monitor.
The historic record shows, there is no risk of losing capital when put into a U.S. index fund.
Who the fuck worries about VaR when CB's got your back. Market it whatever the fuck you want, then offer to sell it to the CB and they will pay the ask, no questions asked. All those old risk models mean jack shit for the past 8 years.
Oh well.
there are no markets only policy tools
Whew! Glad that we dodged that bullet.
The next step is to slow transactions down from microseconds to once a month. Market - yes, price discovery - yes, but slowly.
This is too funny... the PBOC, and now the cops, have investors backs... what could possibly go wrong?
it beats john paulson walking into goldman sach's offices and saying: i want to short some of that garbage you sold to the norway teacher's pension fund that was awesome hahahahaha.
Have the military oversee the 'markets'.
Military minds think it perfectly 'reasonable' to "defend the country" by such policies as Mutual Assured Destruction - the killing of everyone, everywhere on the planet.
That outta 'fix it'.
The People's Bank of Cops.
As Wells Fargo said, just postpones the inevitable
Huh? That ain't the meme flowing from there. BTFD, full scope diversification, and 'alternative' strategies are the song of the day there. Basically 'shut up little muppet and keep taking/buying what we feed you. Oh, and by the way you need a checking, savings and debit card with that too. I gotta cross sell number to hit'.
Wow western markets are fake, but the chineze are even more fake
Hotel Calefornia market (yuan can checkin any time yuan want, but yuan can never leave)
more fake my ass! all the usa big bank's books are a fucking lie.
I never noticed a ban on selling stock for 6 months and get arrested if you do in western markets
just wait
well they banned selling or buying yesterday when they shut down the NYSE. That was no technical glitch...they didn't even switch to the backup system! They then cancelled all orders for the day.
That is a ban. Not yet a 6 month ban, but 'Mericans are too sophisticated to fall for that. They need to be lied to a lot about "technical glitches" first before the gov-scum brings out the big guns and starts rounding up the population for re-edumacation camps.
Bingo. At least the Chinese did not turn off their markets completely.
I had to laugh at all the USA CAPITALISM RAHRAHRAH going on here in some comments yesterday. And how easily people here bought the 'glitch' story -- suuuure, by coincidence, the 'glitch' on the only serious down day in how many years? Had to have been Chinese hackers! Or Anonymous! Or hackerzzzz anywhere!! Couldn't possibly have been an overwhelmed American PPT...
The Chinese actions are laughable and futile. But even worse was the NYSE -- which could not even afford to open AT ALL, that's how terrified they were of selling.
(Except for a few privileged elite, who were no doubt secretly selling behind the CLOSED FOR BUSINESS sign.)
"Capitalism" my ruby-red ass. The US is even more terrified of real price discovery than the "red" Chinese.
PS: This is what real 'price discovery' will look like for all you stawks muppets. When the big ride down happens, the Chinese will ban and arrest everyone in sight... but the yellow Americans will just not open for business at all, blame the Chinese or hackzorz or a damn mouse chewing the cord for it, and even then some here will buy the lie.
You mean the United Airlines, New York Stock Exchange, Wall Street Journal, Zero Hedge and who else? GLITCH???????
AFAIK, your list is complete. And as for the others, I couldn't say. (I'd speculate that ZH, based outside the US and pulling the curtain on western shenanigans far more than anyone else, wasn't hacked by the Chinese, tho. I'd further speculate that the WSJ servers were legitimately overwhelmed with spooked sheeple -- the kind that DON'T read the Hedge -- who looked up from their grazing when the markets weren't green by sunrise, then proceeded to stampede its limited servers for a 'newsy' talking-heads explanation. I'd guess the WSJ servers are no longer used to a genuine crowd of readership, anymore...)
But the NYSE... yeah, BULLSHIT. The only hackers of THAT exchange had PPT for their job title.
Wouldn't surprise me at all if the Chinese had a little PPT help with their market today, too. I'll bet the Chinese fall put the fear of God into the 'free market' controllers over here -- who prolly realised that if the Chinese had another straight down day, the HACKZORZ excuse wasn't going to look so shiny a second day in a row. Since our intrepid journalists will be too busy following Hilldawg and gay newlyweds around, we can only speculate as to the truth. 'Cui bono' is the best place to start.
Hope you're buying some good HOLDS, stawk muppets, b/c on the big ride down -- whenever it comes -- you'll be stuck liking them for a long, LONG time.
That was just cover. They haven't explained the glitch.
And this means they are wonderful. they have no other glaring flaws and are not also riddled with corruption.
Freedom is the best!!!
http://www.washingtonpost.com/business/economy/uk-trader-charged-with-ro...
Dammit, shut up. You better hope Bath House does not read your comment.
I can hear him now:
"If you want to keep your shorts you can keep your shorts."
No more savings accounts...just the stock market now.
LOL! Good point! The 'market' is now safer than your risky bank account!
that is what i call COMMAND ECONOMY
"Beijing Bob"
You will do as you are told... We are smarter and better than you! Same as always with the ruling class.
You have no say so, you just think you do.
Just take a look in the mirror USSA!
Great way to instill confidence, sure makes me want to invest my money in china stock.... Not.
The world has gone mad and the retards have taken over .... You buy stocks or go to jail... Fucked up for sure.
the stock of half those companies was pure fraud. execs should be forced to buy back shares. half the listed companies are nothing but pure fraud. it's getting that way in the usa too. public executions for maggots i say.
I'm against the death penalty.
I'll go with public castrations.
First hang 'em just a little bit?
Hang a little... waterboard a little... electrocute a little... THEN castrations?
I'm getting psyched up for the Two Minutes of Hate.
http://albainternazionale.blogspot.it/2015/07/la-nuova-alba-con-i-brics....
Summit BRICS-SCO updates LIVE ... read this article
No selling Bitchez. You sell, you have meeting with shitgum, round eye.
China using US tactics. On any down day just break the markets. For the last 7 years FED heads showed up on mass to talk the market up. Now the FED is out of bullets so "market circuit breakers" have become real circuit breakers. I guess the Bernank new exactly what he was talking about when he said he could fix markets in 5 minutes.
So basically the Chinese are pulling a reverse Obamacare - which incidentally is the same name as Reggie Love's favorite position.
That's the Reverse Cowbamacareboy position.
"as the Chinese "anti-selling measures" spread and "inspired' confidence"
Confidence my ass, CB's just took it upon themselves to buy stocks directly. There is no retail, and even the big boys are done playing hot potato for the time being. It was nothing but blatent CB's buying anything not nailed down.
This is how it's done, bitchez - you decide which players make money, when and how much. Problem = solved. Of course, there are some drawbacks, such as the lack a fucking market behind the facade. Oh well. Xiaochuan should just script the motions all they way into 2020, confidence would erupt like a well-placed Cruise missile.
The markets around the world have become the biggest joke in town. It takes a gun to their head to prop them up. Pretty soon there won't be a gun big enough.
Pretty soon they won't be able to call them markets.
'Markets' and fiat 'money' are just the p.r. tools.
Bottomline - do what dictators command - or else.
(Until Humanity wakes up to see, that they enforce their own enslavement and could end it tomorrow.)
We just need to think of a new word.
How about the one suggested above by RR: "savings accounts"?
"Mattress"?
https://goo.gl/AgTCFE - Blog about how Bernie Sanders isn't going to save America.
I do hope the Chinese markets go to the moon due to the hilarity that would ensue with the PBOC trying to tame 20%+ inflation rates with a pegged fiat.
Maybe it's not the Chinese short sellers that should be arrested. It's the people buying Greek bonds. At the very least, they should be brought to the sanitarium for observation, because at least what the Chinese traders are doing makes sense.
How to keep the Chinese from liqudating US equities and real estate?
Yeah, there'll be payback time for the hedgies grabbing their Greek/Puerto Rico $$ out of China.
"I'll execute you on behalf of the People."
In communist China, derivative finds YOU!
Totally awesome man. Now, will the Chinese Commissioner of Market Awesomeness please tell us what price AAPL stock is going to close on August 14, 2015.
So Spoo's are up 20 on news China will arrest sellers? Can't you just feel the confidence exude from every banana vendor and housewife?
Thank god everything is fixed. I was just begining to worry.
"Wo Fat! Stop in the name of Marx! Your short-selling days are over, comrade!"
"Never, commie rats! I have discovered capitalism!"
*Bang! Bang!*
Good. J B T F D is intact.
Here in the west ,on the other hand, we are much more civilized , the gouvernment would never attempt to confiscate anything from its citizens , and issue legal threat should they refuse to part from their property , or anything like that.
Silly plantation boy. "Confiscate" implies that you actually OWN something.
Whose property you talking about, kemo sobbie? The kind you pay government rent -- err, taxes -- on? All your property are belong to us. None your property are belong to you.
Spoo's close down 3% today. Sell the rip BITCHEZ!
No, this is just the soclialist version of captalism. Yes, The Death of Capitalism - is in progress.
First part is an oxymoron.
The second part I agree with.
The Chinese stock market going up is being celebrated around the web - biggest increase since 2009. And it only took MASSIVE government controls to get the desired result. I feel like I'm living in Bizaro World.
How come I think the Police Pension funds lost a bunch of money....one way to cover your loss...assrest the guy dropping your stock...lol
Geeesh.....don't give the Fed any ideas.
I'd support the Peoples Army if they shot the likes of Buffett, Soros and the Jews.
Change Jews to Zionists and I might agree.
He does kind of sound like Borat.
Now gimme some more NIRP and QE FFS!
To QEIRPFINITY and beyond! Everyone sell your gold before melts down to the earth's core. What do you need that old relic for anyways?
As if no one here has ever heard of the uptick rule.
Breaking news!....secret footage from PBOC meeting on how to handle "mom and pop" investors
https://www.youtube.com/watch?v=bqJhoT9zP2Q
Shit, I'm about to run out of popcorn.
They have "Americanized" their retail investors.
NO SHORTING OR SELLING ALLOWED...EVER!!!
OK, now the FED's getting ideas... arrest gold hoarders and short sellers.
The government is a partner in what you own. If they want to yield additional dividends from your fully paid off home, they can just increase the tax that you are required to pay for owning it. If things get really bad, you will be forced to share more of what you got.
I don't think it's just the sellers. I understood that it's most Chinese who are short, but that it is impolite to discuss such private matters in public. Now, their government threatens them with arrest for doing it on purpose?!? wow.
The rule seems simple enough. Ownership interests can't be loaned to someone else. And you can't sell what you don't own. It's a fucking centrally controlled government that will shoot you if you fuck with them. So if you don't like it, stay the fuck away from it.
Commies can't have free markets, right Yellen
expect DC to do the same next time there's a crash in the US market.
Mass Wall St beheadings for the banksters and get the USSA back from the Third World!
Not to mention gainful, meaningful employment for Langley's I$I$ animals.