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Why China Has No Choice But To Arrest The Sellers
After dozens of separate interventions, manipulations, and central-planning machinations over the past three weeks, China resorted to threats overnight when it called for the arrest of "hostile short sellers." The reason they went full Orwell, this is the great loss of 'wealth' in China's history...
China's $2 trillion loss in 17 days is the equivalent of 1 India, or...
China has lost 15 Greeces in market cap in three weeks
— zerohedge (@zerohedge) July 8, 2015
In other words, China has to stop the bleeding before it loses another India... or the socially-unrest citizenry will demand gambling returns elsewhere or, absent hope, demand change...
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Can they start by arresting Soros?
And follow it up with Bill Gross?
It's like the Mike Tyson theory.....I bit his ear off because he tried to stop me from making a living.
And don't forget Lloyd.
15 greeces in 17 days?
that beats elton john's long standing record.
Let them <Strikethrough>eat cake</Strikethrough> buy gold.
I’ve seen over and over what appears to be looking toward China and Russia as some sort of savior, and the good guy. If you are a fan of liberty and free markets they are the last you should be looking to. That’s not to say the US has had a good track record, but even if you want to see some kind of retribution for the West’s misconduct, I don’t think you should be looking to those two.
Include also the Shenzen stock exchange that has lost $1 trillion in mkt cap.
Total over $3 trillion of losses.
http://money.cnn.com/2015/06/15/investing/china-stocks-10-trillion/
"The reason they went full Orwell, this is the great loss of 'wealth' in China's history... losing equivalent to 15 Greeces in just 17 days."
Perhaps we in the US could go full Orwell and start with the bankers, and their accomplices in the US Hose and US Senate,
Or they could just let a free market clear out the crap.
But that is not what megalomaniac governments and bankers do.
Losing "made up shit" is not the same as losing something real. They did not f'n lose 15 Greeces. They pretended that they had a bunch of real valuable stuff, and when reality set in, they did not. Same goes for a lot of things.
FGB
read not only this article but please spend an hour or 2 on this site... very insightful http://redefininggod.com/2015/07/globalist-agenda-watch-2015-update-58-t...
"People tend to think of themselves, all the time." Dale Carnegie.
Rich or poor, everyone seems to have a plan to enrich their own life, even the NWO if I get the gist of the website correctly.
I logged in specifically to give you your deserved golf clap...
*golf clap*
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While it is true Blankfein chews on ears, he usually devours them along with the rest of the child. Tyson, not so much.
Arrest and execute a few, preferably some foreign "investment" funds fat cats. That would work wonders...
Welcome to the hotel California, check in any time you like but you can never leave. The nightmare of China, you can buy but you cannot sell!
As opposed to the nightmare of US, where you can sell but only if you're willing to lose your shirt...
They also lost 1.3 trillion in US Treasuries. They just haven't tried to spending them to figure that out.
Is that like putting a Short on their life expectancy?
Sounds like the cheapest and fastest solution. If USSA gripes, they threaten to sell nukes to Iran.
TPTB can then revisit the age old dilemma: "Better for one man (or few men) to end, than for a whole Nation to perish."
I don't know about that adage. "Better for a whole nation of people I don't like to perish." Its really more American.
In the case of Soros, how about if the arrest and execute him. No one would care much
"China has lost 15 Greeces in market cap in three weeks"
but they made 50 Greeces in the 6 months before that.
China is selling scratchoffs, you can buy as many as you want, you just cant scratch them off!
So what you're saying is that... the Chinese stock market has gone Hotel California.
If no one can sell who do you buy from?
Damn good question Bud. I wonder about the ballless bastards that junk you for that question. We all know the answer though. You can sell or buy all you want if you're in the "CLUB". If you aren't, well then you can buy, but thats it. WHat a fucked up system. If they lost 2 or 3 Trillion, where the fuck did they get it to begin with? Then where did it go? If it was cash it sure as hell didnt evaporate and if it was just a fucking mirage, well who gives a rats ass then?
Ever heard about leverage?
It was a mirage but many people bought in on the scam, and those who bought at the wrong time now sit on proper losses. Even if the money you gamble with is lent, you are the one paying for the loss, be that with your house or a life of slaving for your new masters.
Desparation much.
Soros seldom leaves his castle as he requires a blood transfusion every 5 days.
It has always been the same in this country as well. Any idea that we are "now" getting screwed and that it was so wonderful in the past is nothing but a bias based upon what one has experienced. The money power will do whatever it takes to maintain control. This unfortunate judge had a fishing accident after entering a very dangerous order. It is always the same. http://www.thetruthaboutthelaw.com/banks-lend-money-they-create-out-of-t...
BOHICA time in old Beijing. Time for a another 'great leap forward".....
Bullshit ! They have a real economy to fall back on...
Someone needs to define 'wealth' for them. They're under the delusion it means the same thing as it does here in the US.
Oh Buuuuuuulllll Shit. Even after losing 35% they are still up 70% for the year to DATE. Cry me a river. What a scam - topic of conversation.
You are correct. Only the little people who were late to the party got their asses handed to them.
Just because there was a number on the screen doesn't mean it was wealth. Just like HFT orders aren't real orders when they cancel them before yours trade hits. Facade
They are going to still lose more though, using the police to stop shorting is not going to help. Once the "investors" realize they have been duped, there's no stopping the panic.
this is the greatest loss of 'wealth' in China's history...
And so it shall be when the Fed's stock bubble finally blows up in America! Driven by liquidity dumps of epic scale, the stocks drive higher and higher in the face of terrible fundamental economy. The Fed is not god, and when it goes down, it will be America's greatest ever loss of wealth.
The Greatest Transfer of Wealth in China's History
I hope they request extradition for most of Wall Street and issue interpol arrest warrants. That would be awesome. Perhaps even kidnap them on the streets of NY!
play by "law"....who does that anymore? send out the chinese mafia hitmen and start the assasinations.
Good luck finding any buyers other then the PBoC until the markets clear themselves. No one is going touch Chinese markets with a 10 foot barge pole, as long as those draconian measures in place.
The MICEX is oversold and the p/e ratio is super low. ;-)
http://www.micex.com/marketdata/analysis
http://www.bloomberg.com/quote/INDEXCF:IND
If china just let things follow their natural course, the world might see it as an unmanipulated market, a rarity these days, and something to be valued.
Keep on dreaming brother!
A crash is the only way the Chinese regime can deflect blame for their failing economy.
"The reason they went full Orwell, this is the great loss of 'wealth' in China's history..."
Easy come. Easy go.
Odd.
No one was complaining when the funny-money was being printed.
But everyone is upset when it INEVITABLY returns whence it came.
Folks, you cannot surf to a wealthy humanity on a wave of theft.
When theft is the plan, one person's gain is another's loss.
Theft cannot EXPAND THE FINANCIAL SEA.
Either the Wave HERE means a depression THERE (direct theft/subsidy), or you get a high tide NOW which must be followed by a low tide LATER (credit expansion/Monetary devaluation).
sure.
But here's why the US needs to keep the wars going, even if it means arming both sides and pretending to fight one of them:
https://static.nationalpriorities.org/images/charts/2015/discretionary-d...
I'll see your "Discretionary Spending" chart.
And I raise you one "Total Spending" chart.
http://www.usgovernmentspending.com/piechart_2015_US_total
Appears we pay more for Pensions and Health Care than we do for Defense.
Nice trick the politicians pulled, though...delcaring everything else to be 'discretionary'.
"appears" being the operative in that sentence.
I'm suuuuuuuuuuuuuuuuuuure that "Defense" spending is inclusive of all the black budget items, right?
/s
how's about rummy's trillions?
Easy come, easier go.
As Simon Black will undoubtedly write on ZH later today or tomorrow, China really blew it on this one.
Instead of maintaining the global confidence in China's vision and leadership on Monetary and Financial markets, i.e. in allowing for Price Discovery (correction/deflation) of Investment Bubbles, they "Went all Mao".
This instant loss of Trust will allow the IMF to deny China a seat at the SDR table, or give it a cheap, small seat at the Table of allocating sovereign currencies into the SDR basket of currencies.
Looks like the Globalist Jewish Banksters outfoxed the Chinese Banksters once again. The Chinese might be smart, but the Jews are just as smart (if not smarter), and certainly more creative -- especially on the fly. IMHO.
Full Maotard.
While I feel bad about the Chinese sellers who are going to jail...I don't feel bad about this event at all.
The issue is this...TPTB, and Banksters have been shifting currency to China since Japan broke 25 years ago, if not before. I say "Currency" rather than money...because it is not money. It is credit created on a fractional-reserve basis from a debt security, which is to say a promise.
The Chinese government then took that credit and used it as a resource and basis from which to extend their currency, in order to implement a mercantilist system with a dollar-peg to ensure their export balance.
Shortly, the 'Chinese Miracle' exists because of funny-money and the officilal use of currency as a means to theft.
There's a lot of both in the world, and the Chinese should not feel their banking idiots, or government idiots are worse than others' government idiots or banking idiots on that account.
The reason I don't feel bad about it is this:
TPTB, Globalist Banksters, did this because they believe in Central Planning and Authoritarianism generally. They have spent the last couple decades trying to sink the US, in the post-soviet world, while trying to build a liferaft Republic for Europe, and putting the bulk of their wealth in Asia.
I love to see people who thusly play God getting crushed in the gears of their own machinations.
China should seize all US assets in China to make up for these US short sellers bad deeds.
I expect some serious troubles in the US markets over the summer, and after Labour Day. Payback is always a bitch...
China should prohibit Jews from buying, selling, or brokering listed Chinese securities.
It is awesome that the Chinese are finally going to give a lickin to short sellers. They had it coming for a long time.
What short sellers? It's people trying to get out of the market before they lose all they borrowed to buy.
People have to pay debts, they lose the farm and they sell their gold. Hold that thought selling gold. Chinese government will do anything to get the gold, off of their own people how very easy. They know about patience and change and have been preparing for years. My advice hold your physical gold close. Chances are you wont see $2000, $3000 0r $4000 gold. Imho we are going straight to $5000 plus gold price. My significant number is $5554 then over time to over $15000 and maybe $16000. Stack it up not to long to wait now.
or just go with the herd, shame the herd did not see any of this like I did and shared http://forums.silverstackers.com/topic-47523-gold-prediction-to-top-all-...
ho hum
Nice article on the blog site Wall Street on Parade this Morning...
http://wallstreetparade.com2015/07/china-stocks-and-the-new-york-stock-exchange-shutdown-the-untold-story/
That was a good article thanks. The link was dead, so I had to use this web address.
Wall Street On Parade
Long Beijing and Shanghai helicopter pilot training schools.
"losing equivalent to 15 Greeces in just 17 days."
And Schaeuble cannot even lose one.
Hard as he tries. It's like he got stuck with the tar baby (that's not raciss is it?).
A "Loss"? You mean there isn't a TRANSFER, since there's always a Seller and a Buyer?
Exactly! No money was lost. It was already sitting on some seller's account. The whole market cannot be valued at some high price at which one single stock was sold, for example. There is never enough buyers at high prices for the whole market to be capitalized. Communist Chinese are unable to comprehend that.
these people are heroes, wealth was preserved that would have otherwise disappeared. all short sellers are heroes, and in america they die like dogs to save bernanke and his casino policies. short sale is essentially a third party position, if it was zero sum like the commodity market, then indeed the size of all that inflated buying can disappear. the only problem in the event of a crash is will the third party be able to pay off. casino rules first you have to win the wager, then you have to get out of the casino with the money.
If you borrow money to buy stock, you are explicitly allowing your broker to lend that stock to a short seller. Read the contract. If you don't want your stock to be lent out, then don't open a margin account. Simple as that. Don't assume just because you have a margin account and aren't using it that your stock can't be lent out. It can. Again, read the contract.
If people had to pass a test similar to a driver's license before they could open a brokerage account, there'd be fewer people playing on margin and far less whining about short sellers.
"I didn't understand the game" is no excuse.
Nope, a "LOSS" of the type that is only possible in a fractionally-reserved banking and currency system, where the the digits are conjured from nothing for a bankers' or politicians' pleasure, and returns to nothing when someone says, "Nope...not going to accept that".
Money that came from nothing can return to nothing...and INEVITABLY will return to nothing.
Somebody, who had no money to loan, loaned non-existent money to someone at interest...and the loan recipient spent it. And in spending it, and because it was money that did not exist in the economy before he took his loan, it represented bid prices of the things he bought upward.
Inflation.
And that upward bias in prices, from a rapidly expanding money supply, both base money and loans - both of which came from NOTHING, bid up prices in the Chinese Markets (as they had in the US Markets, and European Markets). And eventually, someone looks at these prices and says, "No! I will not pay!"...and when he does, the whole thing implodes.
Ever been to an auction? What about the guy who bids, and bids, but never has any money? That guy bids up prices, higher than they would otherwise be. But eventually, that guy is stuck as the high bidder and says "Hell, No! I won't pay!" And when he does that the price of the thing he bid on has to come down.
Except when that guy who bids everything in the auction up is a central bank or government, or one of the toadies they funnel their new cash to...it bids up EVERY PRICE...and eventually he'll be caught...as now appears to be happening in China.
Except in China, he has pulled a gun and said that everyone who buys has to abide by the price he bid up...even though neither he nor they can pay...
Exactly why is the guy who gave out nothing, but called it a loan, due something in return?
Imaginary money was lost, nothing more. Market cap does not equal realy money. This is a ficticious money, based on wishes, unicorns and machinations. It came out of nothing and went back to nothing. So what is the problem actually?
The only problem is for those that used their savings to buy at the high imaginary prices.
May this be an unforgettable lesson.
"The only problem is for those that used their savings to buy at the high imaginary prices"
It's even worse for those that bought with leverage. Margin calls - phones are ringing around the village.
Banning sales is a very short term and destructive solution.
"China has lost 15 Greeces in market cap in three weeks"
BS!
Those stock prices were just a fiat money wet dream!
They are still a wet dream.
So what would the loss in market cap be in Drachmas?
The problem is, just like here in the U.S., other bets were leveraged against this ethereal money.
Even more bets were leveraged on top of that.
What could go wrong.
Nobody could have seen it coming. Nobody!
Stopping the rosses is what it's arr about, Chinese readers don't want levorution!
Extradite George Soros to China! Rut Ro. Big trouble for you Georgie boy.
In a country well governed poverty is something to be ashamed of. In a country badly governed wealth is something to be ashamed of." ~ Confucious
It helps if you say each one out loud.
(I had to read some of them twice.)
- That's not right..................................Sum Ting Wong
- Are you harbouring a fugitive?...............Hu Yu Hai Ding?
- See me asap......................................Kum Hia Nao
- Stupid man........................................Dum Gai
- Small horse.......................................Tai Ni Po Ni
- It's very dark in here...........................Wai So Dim?
- I thought you were on a diet................Wai Yu Mun Ching?
- This is a tow-away zone......................No Pah King
- Our meeting is scheduled for next week......Wai Yu Kum Nao?
- Staying out of sight............................Lei Ying Lo
How To Speak Chinese - AdvancedI wish some could do a better job of dtermining something more like the actual amount of money lost rather than simply the nominal change in market cap which is easy to calculate but bullshit.
"this is the great loss of 'wealth' in China's history..."
Is it a loss of wealth, or just a transfer of wealth? For every buyer there's a seller, so that money is still around - it just isn't in the stock market anymore.
When an earthquake wipes out your town, that is a loss of wealth. Likewise, when a government prints money to bail out a market or bank, the resulting inflation is also a loss of wealth, but apart from that, all that's happened here is money changed hands.
Here's the thing. If you're a trader or investor, then you should anticipate potential losses and have a plan to minimize them. These people who lost money were neither - they were simply gambling, and we all know how that turns out.
China markets up. DOS attacks off. China should tank tomorrow. MOAR DOS attacks expected.
Was it possible to short sell Chinese stocks from outside of the country?
Is that what this NYSE shutdown was about?
Amateurs. They need to take a communist lesson from Obamacare and force people to buy stocks by law.
What better way to encourage a fundamentally communist educated population to discard any idea of get rich quick schemes like capitalism. It makes it so much easier to return to Communism 101.
How do we know that the hostile short sellers are not a large Soros funded group using unlimited central bank money to take down the Chinese market? If this is the case I would threaten arrest as well. It's one thing to let a market drop under natural conditions, but when attackers are purposely placed in position, so as to take down the market then that is war.
Soros + Co with their US$ 800 Trillion derivatives Casino remain powerless against China's 1.3 billion people - assuming these banksters are not willing to cut their connection to earth and to move to a different galaxy!
maybe Bernanke could give them advice like his does to the mafia hedgefunds that kickback .00001% of the trillions he has given them
Selling shares you don't own should be illegal. It's fraud.
Or, like losing 1700 Detroits. But it was all paper gains anyway, right?
China should do what the Israelis did to the perpetrators of the Munich Olympics massacre. Track 'em down one at a time.
Go on margin and buy Greece. European countries are relatively scarce right? Price will only go up.
When they arrest the sellers who is going to buy?
Jewhad finacial terrorism