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China Soars Most Since 2009 After Government Threatens Short Sellers With Arrest, Global Stocks Surge

Tyler Durden's picture




 

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.

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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Thu, 07/09/2015 - 06:59 | 6289084 surf0766
surf0766's picture

Dear Leader just had another idea

Thu, 07/09/2015 - 07:02 | 6289088 VinceFostersGhost
VinceFostersGhost's picture

 

 

Kinda like Obamacare....you have to buy it.

 

If you feel like you're a trapped rat.....that's because you are.

Thu, 07/09/2015 - 07:03 | 6289095 nmewn
nmewn's picture

You read my mind ;-)

Thu, 07/09/2015 - 07:09 | 6289115 nosam
nosam's picture

Dead cat bounce.

Falling knife taking a short break from falling

Thu, 07/09/2015 - 07:14 | 6289126 Serfs Up
Serfs Up's picture

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.

Thu, 07/09/2015 - 07:27 | 6289144 Croesus
Croesus's picture

.

Thu, 07/09/2015 - 07:34 | 6289164 Oh regional Indian
Oh regional Indian's picture

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....

Thu, 07/09/2015 - 07:36 | 6289167 Save_America1st
Save_America1st's picture

might as well just ban all human trade and interactions and go with 100% algo-bots. 

Thu, 07/09/2015 - 07:43 | 6289192 Oh regional Indian
Oh regional Indian's picture

Getting there faster than the speed of light....lasers, masers and tasers.....

Thu, 07/09/2015 - 07:48 | 6289200 eclectic syncretist
eclectic syncretist's picture

Sounds like it's time for a good old suckers rally.

Thu, 07/09/2015 - 07:51 | 6289211 MeetTozter
MeetTozter's picture

It just shows that the Market works best when the Government and Bankers combine their resources for their mutual benefit.

Thu, 07/09/2015 - 08:19 | 6289276 Oldwood
Oldwood's picture

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.

 

Thu, 07/09/2015 - 08:43 | 6289363 pods
pods's picture

Yoomusta buyamoor stocks!

Thu, 07/09/2015 - 08:47 | 6289374 New England Patriot
New England Patriot's picture

So I guess everything is fixed then.

Thu, 07/09/2015 - 09:01 | 6289442 COSMOS
COSMOS's picture

Just goes to prove every banker likes to keep his kidneys and his life above making a big profit.

Thu, 07/09/2015 - 09:20 | 6289540 847328_3527
847328_3527's picture

The Chinese leaders make a very persuasive argument, eh.

Thu, 07/09/2015 - 09:13 | 6289510 Memedada
Memedada's picture

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%).

Thu, 07/09/2015 - 16:21 | 6291829 jcdenton
jcdenton's picture

"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

Thu, 07/09/2015 - 08:20 | 6289280 iinthesky
iinthesky's picture

Yeah Mon!

Wait, what is the purpose for the stock market again?

Thu, 07/09/2015 - 12:24 | 6290494 Antifaschistische
Antifaschistische's picture

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.

Thu, 07/09/2015 - 08:48 | 6289378 Antifaschistische
Antifaschistische's picture

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.

Thu, 07/09/2015 - 10:07 | 6289772 Bush Baby
Bush Baby's picture

CrowdFunding 

Thu, 07/09/2015 - 07:37 | 6289168 y3maxx
y3maxx's picture

aka......

China QE #1

Thu, 07/09/2015 - 07:43 | 6289172 J S Bach
J S Bach's picture

"Charlie Don't Sell!"

- Lt. Col. Kilgore - "Apocalypse Now"

Thu, 07/09/2015 - 09:09 | 6289453 cowdiddly
cowdiddly's picture

"IS THAT ALL YOU GOT"

Lt. Dan - "Forest Gump"

Thu, 07/09/2015 - 07:27 | 6289149 Tall Tom
Tall Tom's picture

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..

Thu, 07/09/2015 - 07:55 | 6289221 SillySalesmanQu...
SillySalesmanQuestion's picture

Mao Mutual Funds. They're Grrrrrrrrrrrrreat!
Have a great day!

Thu, 07/09/2015 - 08:51 | 6289370 iinthesky
iinthesky's picture

Stop the press! Did you just say Freedom?

TERRORIST!

Thu, 07/09/2015 - 09:05 | 6289457 tooktheredpill
tooktheredpill's picture

not just awesome, but <in a high pitch girly voice> OOORRRRRRRRSOME!!

Thu, 07/09/2015 - 07:48 | 6289201 RiverRoad
RiverRoad's picture

Looks like the Fed's going to get their rate hike(s) come hell or high water....maybe both.

Thu, 07/09/2015 - 09:10 | 6289485 RaymondKHessel
RaymondKHessel's picture

They did you just didn't see it yesterday at 1:30PM EST

Thu, 07/09/2015 - 10:24 | 6289865 RiverRoad
RiverRoad's picture

The hell I didn't.

Thu, 07/09/2015 - 07:37 | 6289159 XAU XAG
XAU XAG's picture

FUBAR-NOMICS TM

Thu, 07/09/2015 - 07:37 | 6289169 p00k1e
p00k1e's picture

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!!! 

Thu, 07/09/2015 - 09:29 | 6289596 lakecity55
lakecity55's picture

Uhh, they are Communists...

Sat, 07/11/2015 - 08:58 | 6298774 roddy6667
roddy6667's picture

Define Communism

Thu, 07/09/2015 - 10:13 | 6289803 cornflakesdisease
cornflakesdisease's picture

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/

Thu, 07/09/2015 - 12:29 | 6290511 Telemakhos
Telemakhos's picture

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.

Thu, 07/09/2015 - 07:49 | 6289205 booboo
booboo's picture

"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.

Thu, 07/09/2015 - 08:55 | 6289386 lunaticfringe
lunaticfringe's picture

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.

Thu, 07/09/2015 - 10:40 | 6289956 Larry Dallas
Larry Dallas's picture

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.

Thu, 07/09/2015 - 08:53 | 6289401 post turtle saver
post turtle saver's picture

the beatings will continue until morale improves... wow, that actually works

Thu, 07/09/2015 - 09:22 | 6289557 Salzburg1756
Salzburg1756's picture

So simple even a commie could do it.

Thu, 07/09/2015 - 09:37 | 6289641 williambanzai7
williambanzai7's picture

SHORT STREET

Thu, 07/09/2015 - 10:41 | 6289961 Black Warrior W...
Black Warrior Waterdog's picture

Thank Buddha for free markets!

Thu, 07/09/2015 - 07:02 | 6289089 terry44
terry44's picture

Why would anyone go back into this market when you might not be able to sell when you want to?

Thu, 07/09/2015 - 07:44 | 6289193 bobdog54
bobdog54's picture

Cuz the govt just guaranteed no downside.... I think this CommieCapitalism may catch on, just wait for the executive order.

Thu, 07/09/2015 - 08:00 | 6289234 terry44
terry44's picture

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?

Thu, 07/09/2015 - 09:01 | 6289443 ZippyDooDah
ZippyDooDah's picture

"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!

Thu, 07/09/2015 - 10:57 | 6290046 Bananamerican
Bananamerican's picture

Crash? didn't you hear the man Terry? They just outlawed Gravity

Thu, 07/09/2015 - 08:50 | 6289385 iinthesky
iinthesky's picture

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!

Thu, 07/09/2015 - 09:20 | 6289545 J Jason Djfmam
J Jason Djfmam's picture

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Thu, 07/09/2015 - 10:42 | 6289974 Icelandicsaga.....
Icelandicsaga...............................................'s picture

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.

 

 

Thu, 07/09/2015 - 07:02 | 6289092 nmewn
nmewn's picture

"Buy all these things! We will arrest any & all traitors! Buy all these things!"

Thu, 07/09/2015 - 07:10 | 6289118 fudge
fudge's picture

pick any country,,soon ;)

Thu, 07/09/2015 - 07:23 | 6289140 HardAssets
HardAssets's picture

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.

Thu, 07/09/2015 - 07:27 | 6289150 chunga
chunga's picture

Jade Helm is right around the corner. How sucky would that be if everybody gets locked up in stock buying camps.

Thu, 07/09/2015 - 07:47 | 6289197 Bastiat
Bastiat's picture

It will be interesting if that little exercise elicits popular mockery rather than cooperation.

Thu, 07/09/2015 - 08:57 | 6289421 iinthesky
iinthesky's picture

In the famous words of Bugs Bunny:

"I never studied the laws of gravity!"

Thu, 07/09/2015 - 07:28 | 6289156 Freddie
Freddie's picture

When can we arrest the people at CNBC, Goldman and the Fed?

Thu, 07/09/2015 - 09:09 | 6289462 Element
Element's picture

Eat yer equities!

Bloat On - Cheech and Chong

Thu, 07/09/2015 - 07:03 | 6289093 i_call_you_my_base
i_call_you_my_base's picture

How do you calculate VaR when half of your portfolio is unsalable?

What happens if you need those funds to cover debts?

Thu, 07/09/2015 - 07:07 | 6289108 Huh Reeeally
Huh Reeeally's picture

Like a margin call?

Thu, 07/09/2015 - 07:08 | 6289112 Debugas
Debugas's picture

Q: How do you calculate VaR when half of your portfolio is unsalable?

A: unsellable means price is 0

Thu, 07/09/2015 - 07:11 | 6289120 i_call_you_my_base
i_call_you_my_base's picture

Banks: "Our model says otherwise."

Thu, 07/09/2015 - 07:17 | 6289134 NoDebt
NoDebt's picture

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.

Thu, 07/09/2015 - 08:03 | 6289236 eclectic syncretist
eclectic syncretist's picture

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

Thu, 07/09/2015 - 09:05 | 6289446 lunaticfringe
lunaticfringe's picture

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.

Thu, 07/09/2015 - 13:21 | 6290773 HopefulCynical
HopefulCynical's picture

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.

Thu, 07/09/2015 - 07:49 | 6289203 p00k1e
p00k1e's picture

The historic record shows, there is no risk of losing capital when put into a U.S. index fund. 

Thu, 07/09/2015 - 07:19 | 6289136 firstdivision
firstdivision's picture

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. 

Thu, 07/09/2015 - 09:22 | 6289551 J Jason Djfmam
J Jason Djfmam's picture

Oh well.

Thu, 07/09/2015 - 07:03 | 6289096 buzzsaw99
buzzsaw99's picture

there are no markets only policy tools

Thu, 07/09/2015 - 07:03 | 6289097 Tinky
Tinky's picture

Whew! Glad that we dodged that bullet.

 

Thu, 07/09/2015 - 07:05 | 6289099 Gmpx
Gmpx's picture

The next step is to slow transactions down from microseconds to once a month. Market - yes, price discovery - yes, but slowly.

Thu, 07/09/2015 - 07:05 | 6289101 Huh Reeeally
Huh Reeeally's picture

This is too funny... the PBOC, and now the cops, have investors backs... what could possibly go wrong?

Thu, 07/09/2015 - 07:08 | 6289109 buzzsaw99
buzzsaw99's picture

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.

Thu, 07/09/2015 - 07:31 | 6289161 HardAssets
HardAssets's picture

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'.

Thu, 07/09/2015 - 09:23 | 6289562 J Jason Djfmam
J Jason Djfmam's picture

The People's Bank of Cops.

Thu, 07/09/2015 - 07:06 | 6289103 de3de8
de3de8's picture

As Wells Fargo said, just postpones the inevitable

Thu, 07/09/2015 - 08:39 | 6289343 The Merovingian
The Merovingian's picture

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'.

Thu, 07/09/2015 - 07:06 | 6289104 savedeposit
savedeposit's picture

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)

Thu, 07/09/2015 - 07:09 | 6289114 buzzsaw99
buzzsaw99's picture

more fake my ass! all the usa big bank's books are a fucking lie.

Thu, 07/09/2015 - 07:11 | 6289119 savedeposit
savedeposit's picture

I never noticed a ban on selling stock for 6 months and get arrested if you do in western markets

Thu, 07/09/2015 - 07:14 | 6289127 buzzsaw99
buzzsaw99's picture

just wait

Thu, 07/09/2015 - 07:42 | 6289189 Save_America1st
Save_America1st's picture

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. 

Thu, 07/09/2015 - 07:56 | 6289214 Renfield
Renfield's picture

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.

Thu, 07/09/2015 - 07:56 | 6289226 RiverRoad
RiverRoad's picture

You mean the United Airlines, New York Stock Exchange, Wall Street Journal, Zero Hedge and who else? GLITCH???????

Thu, 07/09/2015 - 08:15 | 6289230 Renfield
Renfield's picture

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.

Thu, 07/09/2015 - 09:43 | 6289659 robertocarlos
robertocarlos's picture

That was just cover. They haven't explained the glitch.

Thu, 07/09/2015 - 07:16 | 6289131 RealityCheque
RealityCheque's picture

And this means they are wonderful. they have no other glaring flaws and are not also riddled with corruption.

Freedom is the best!!!

Thu, 07/09/2015 - 09:13 | 6289509 lakecity55
lakecity55's picture

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."

Thu, 07/09/2015 - 07:53 | 6289218 RiverRoad
RiverRoad's picture

No more savings accounts...just the stock market now.

Thu, 07/09/2015 - 08:17 | 6289267 Renfield
Renfield's picture

LOL! Good point! The 'market' is now safer than your risky bank account!

Thu, 07/09/2015 - 07:07 | 6289106 Debugas
Debugas's picture

that is what i call COMMAND ECONOMY

Thu, 07/09/2015 - 07:07 | 6289107 wmbz
wmbz's picture

"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!

Thu, 07/09/2015 - 07:11 | 6289111 Bill of Rights
Bill of Rights's picture

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.

Thu, 07/09/2015 - 07:13 | 6289125 buzzsaw99
buzzsaw99's picture

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.

Thu, 07/09/2015 - 07:28 | 6289155 Zero Point
Zero Point's picture

I'm against the death penalty.

I'll go with public castrations.

Thu, 07/09/2015 - 08:20 | 6289279 Renfield
Renfield's picture

First hang 'em just a little bit?

Hang a little... waterboard a little... electrocute a little... THEN castrations?

Thu, 07/09/2015 - 09:25 | 6289572 J Jason Djfmam
J Jason Djfmam's picture

I'm getting psyched up for the Two Minutes of Hate.

Thu, 07/09/2015 - 07:10 | 6289116 Condor96
Condor96's picture

http://albainternazionale.blogspot.it/2015/07/la-nuova-alba-con-i-brics....

Summit BRICS-SCO updates LIVE ... read this article

Thu, 07/09/2015 - 07:29 | 6289158 El Hosel
El Hosel's picture

No selling Bitchez. You sell, you have meeting with shitgum, round eye.

Thu, 07/09/2015 - 07:12 | 6289123 sudzee
sudzee's picture

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.

 

Thu, 07/09/2015 - 07:18 | 6289124 juicy_bananas
juicy_bananas's picture

So basically the Chinese are pulling a reverse Obamacare - which incidentally is the same name as Reggie Love's favorite position.

Thu, 07/09/2015 - 09:27 | 6289580 J Jason Djfmam
J Jason Djfmam's picture

That's the Reverse Cowbamacareboy position.

Thu, 07/09/2015 - 07:14 | 6289128 firstdivision
firstdivision's picture

"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.

Thu, 07/09/2015 - 07:23 | 6289132 BitchezGonnaBitch
BitchezGonnaBitch's picture

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.

Thu, 07/09/2015 - 07:22 | 6289138 Evil Franklin
Evil Franklin's picture

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. 

Thu, 07/09/2015 - 07:27 | 6289148 silverer
silverer's picture

Pretty soon they won't be able to call them markets.

Thu, 07/09/2015 - 07:39 | 6289182 HardAssets
HardAssets's picture

'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.)

Thu, 07/09/2015 - 08:22 | 6289281 Renfield
Renfield's picture

We just need to think of a new word.

How about the one suggested above by RR: "savings accounts"?

Thu, 07/09/2015 - 09:28 | 6289588 J Jason Djfmam
J Jason Djfmam's picture

"Mattress"?

Thu, 07/09/2015 - 07:23 | 6289139 mojojojo
mojojojo's picture

https://goo.gl/AgTCFE - Blog about how Bernie Sanders isn't going to save America.

Thu, 07/09/2015 - 07:25 | 6289145 firstdivision
firstdivision's picture

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. 

Thu, 07/09/2015 - 07:26 | 6289146 silverer
silverer's picture

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.

Thu, 07/09/2015 - 07:26 | 6289147 Wahooo
Wahooo's picture

How to keep the Chinese from liqudating US equities and real estate?

Thu, 07/09/2015 - 08:35 | 6289318 RiverRoad
RiverRoad's picture

Yeah, there'll be payback time for the hedgies grabbing their Greek/Puerto Rico $$ out of China.

Thu, 07/09/2015 - 07:32 | 6289162 reader2010
reader2010's picture

"I'll execute you on behalf of the People."

Thu, 07/09/2015 - 07:38 | 6289171 juicy_bananas
juicy_bananas's picture

In communist China, derivative finds YOU!

Thu, 07/09/2015 - 07:39 | 6289173 Downtoolong
Downtoolong's picture

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.

Thu, 07/09/2015 - 07:38 | 6289174 T-NUTZ
T-NUTZ's picture

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?

Thu, 07/09/2015 - 07:38 | 6289175 jschurchin
jschurchin's picture

Thank god everything is fixed. I was just begining to worry.

Thu, 07/09/2015 - 08:55 | 6289410 lakecity55
lakecity55's picture

"Wo Fat! Stop in the name of Marx! Your short-selling days are over, comrade!"
"Never, commie rats! I have discovered capitalism!"
*Bang! Bang!*

Thu, 07/09/2015 - 07:38 | 6289176 Comte d'herblay
Comte d&#039;herblay's picture

Good. J B T F D is intact.  

 

Thu, 07/09/2015 - 07:43 | 6289191 brucyy
brucyy's picture

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.

 

Thu, 07/09/2015 - 08:25 | 6289290 Renfield
Renfield's picture

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.

Thu, 07/09/2015 - 07:47 | 6289198 T-NUTZ
T-NUTZ's picture

Spoo's close down 3% today.  Sell the rip BITCHEZ!

Thu, 07/09/2015 - 07:47 | 6289199 fromthinair
fromthinair's picture

No, this is just the soclialist version of captalism. Yes, The Death of Capitalism - is in progress.

Thu, 07/09/2015 - 09:25 | 6289571 Memedada
Memedada's picture

First part is an oxymoron.

The second part I agree with.

 

Thu, 07/09/2015 - 07:50 | 6289208 MathWins
MathWins's picture

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.

Thu, 07/09/2015 - 07:51 | 6289210 youngman
youngman's picture

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

Thu, 07/09/2015 - 07:53 | 6289216 JohnGaltsChild
JohnGaltsChild's picture

Geeesh.....don't give the Fed any ideas.

Thu, 07/09/2015 - 07:57 | 6289227 Irishcyclist
Irishcyclist's picture

I'd support the Peoples Army if they shot the likes of Buffett, Soros and the Jews.

Thu, 07/09/2015 - 08:51 | 6289391 lakecity55
lakecity55's picture

Change Jews to Zionists and I might agree.

Thu, 07/09/2015 - 09:30 | 6289604 J Jason Djfmam
J Jason Djfmam's picture

He does kind of sound like Borat.

Thu, 07/09/2015 - 07:57 | 6289228 random999
random999's picture

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?

Thu, 07/09/2015 - 08:00 | 6289233 sessinpo
sessinpo's picture

As if no one here has ever heard of the uptick rule.

Thu, 07/09/2015 - 08:02 | 6289238 JoeTurner
JoeTurner's picture

Breaking news!....secret footage from PBOC meeting on how to handle "mom and pop" investors

https://www.youtube.com/watch?v=bqJhoT9zP2Q

Thu, 07/09/2015 - 08:06 | 6289244 eddiebe
eddiebe's picture

Shit, I'm about to run out of popcorn.

Thu, 07/09/2015 - 08:22 | 6289265 SillySalesmanQu...
SillySalesmanQuestion's picture

They have "Americanized" their retail investors.
NO SHORTING OR SELLING ALLOWED...EVER!!!

Thu, 07/09/2015 - 08:23 | 6289285 gwar5
gwar5's picture

OK, now the FED's getting ideas... arrest gold hoarders and short sellers.

Thu, 07/09/2015 - 08:42 | 6289287 OneTinTrooper
OneTinTrooper's picture

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.

Thu, 07/09/2015 - 08:25 | 6289289 PleasedToMeatYou
PleasedToMeatYou's picture

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.

Thu, 07/09/2015 - 08:37 | 6289333 OneTinTrooper
OneTinTrooper's picture

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.

Thu, 07/09/2015 - 08:31 | 6289311 1stepcloser
1stepcloser's picture

Commies can't have free markets, right Yellen

Thu, 07/09/2015 - 08:38 | 6289339 d edwards
d edwards's picture

expect DC to do the same next time there's a crash in the US market.

Thu, 07/09/2015 - 08:35 | 6289317 Rev Kuhlaid
Rev Kuhlaid's picture

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.

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