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Coming To America? China Censors Bad Market Talk Amid Meltdown
Back in July, after a dramatic unwind in the half dozen or so backdoor margin lending channels that had helped drive Chinese stocks to nosebleed levels triggered a terrifying 30% decline (vaporizing billions in paper profits in the process), the Politburo predictably stepped in to rescue the market.
However, when it started to become clear that a succession of declarations, directives, policy rate cuts, and even threats weren’t going to be enough to alleviate the pressure on equities, Beijing looked to take back the narrative by banning the use of certain undesirable phrases.
Here’s what happened (as detailed in "China Bans Use Of Terms 'Equity Disaster' And 'Rescue The Market'"):
Although it’s not possible to know exactly what the mood is among Party officials in China regarding the inexorable slide in stock prices that’s unfolded over the course of the last three weeks, it’s reasonable to assume that at least some officials in Beijing are in the throes of Politburo panic after watching some $3 trillion in market value disappear into thin (and probably polluted) air.
Amid the turmoil, China has resorted to an eye-watering array of policy maneuvers, pronouncements, and plunge protection schemes aimed at arresting the slide.
Nothing has worked.
Not suspending compulsory liquidation for unmet margin calls, not billions in committed market support from brokerages, not a PBoC backstop for the CFSC, and not even a ban on selling by the Social Security Council.
And so, with every attempt to manipulate the market higher falling flat in the face of selling pressure from the hairdresser/ farmer/ banana vendor day trading crowd (which has now thrown in the towel on the whole “it’s easier than farm work” theory and now just wants to break even and head for the hills) the only thing left for China to do is “fix” the narrative.
In other words, when banning selling doesn’t work, the logical next step is to ban talking about selling. As FT reports, one domestic journalist, who did not want to be named, said the government had banned local media from using the terms 'equity disaster' and 'rescue the market' in their reports on the stock market."
Given the above it shouldn't come as a surprise that after Chinese stocks collapsed overnight, Beijing has reportedly banned discussion and forbade "negative market reports."
BREAKING: Chinese authorities issued notice to state media to censor negative market reports following #BlackMonday pic.twitter.com/hQ6vbksYtw
— George Chen (@george_chen) August 24, 2015
So with the censorship machine in high gear, Xi Jinping had better hope that Beijing can at least still exert some control over the narrative because as we saw over the weekend when angry investors captured the head of Fanya Metals Exchange, and as is clear from the outcry surrounding the chemical blast in Tianjin, the public is restless, and the collapse of the stock market might just be the catalyst for social upheaval.
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only 2 more hours until general tso's doom with doom fried rice and a doom roll
https://pbs.twimg.com/profile_images/459782177249439745/2f2HYoGw.jpeg
China should hire CNBS as consultant.
"Beijing looked to take back the narrative by banning the use of certain undesirable phrases."
We're a democracy and we have banned words and phrases as well.
So what?
Those old Communist habits die hard...or not at all.
there is plenty of negative news on the TV and social media today and yesterday, from what i've seen and the handful of others i asked
same about tianjin...
so, the censors are either being overstated here or are ineffective there lol
Reality is catching up with China in a big way.
Their corruption and manipulation are even greater than ours here in America. Corruption, manipulation and dictatorship are toxins to investors (like me anyway). Chinese stocks even here down 40%? No thank you.
Some Chinese products are a great value though... Can make money...
EDIT: Trump sez he told us so (re China affecting our markets):
http://www.kitco.com/news/2015-08-24/Trump-On-China-s-Equity-Meltdown-I-...
Ruh Roh Tyler.
ZH will be first on the list to be censored when this comes to the USSA.
You've been making people look silly with some of your tweets.
Words like Nigger, Spic, Commie, Mick, Wop, Polock, Chink, Slant-eye, Jap, Kraut, etc (these used to be good humored school ground insults), Confederacy, "Uncle Toms Cabin", war of northern aggression, "Adventures of Huckleberry Finn", rebellion, and revolution.
Words are intimacies. They have meaning. They have connections to everyday life and common history.
Banning these words is a divisive tactic. There is no intimacy, connection or common history. We turn against each other.
And that is exactly what our overloards want.
BREAKING: Color Red Banned In China.
"doom fried rice and a doom roll" lol... from shitty wok!
Hear no "Evil, See no Evil, Speak no Evil"... Motto sign hanging over the doorway going into the CNBS Broadcasting floor.
Do you see what happens when we take the MSG out?
the only thing coming to America are any Chinese that still have money left to GTFO of China...
Watched CNBC for the first time in a few years today. They sure sounded like state owned media and bad talking the markets was definitely censored.
Teh we is banned from their site.
I had the misfortune of flipping through the channels and saw Cramer's dome on the Today Show. Thank goodness my reflexes kicked in one second later and I didn't have to hear that voice.
The I also had the misfortune of tuning it in 5 minutes before the close to see the carnage. It was "only" down 400, which Pisani tried to make into a really successful day. But then Liesman came on and talked about how he had heard from one Fed governor that interest rate hikes were still on the table. Five minutes and 150+ points more to the downside later, the market closed.
Total cheerleading. I miss the days when Mark Haynes was on the station.
I miss Mark Haynes as well. One of the greats. His reporting on 9/11 was excellent, see that so little now.
+100 Mark was awesome!
Mark was the last vestige of integrity there.
For all intents and purposes, CNBS is state owned. Just think of the family of channels.
CNBS Pure financial tripe, propaganda
NBC Brian Williams, grossly edited stories (Zimmerman, etc.) propaganda
MSNBC Batshit insane motherfucking crazy propaganda
Golf channel ..... an oasis of whatever
ESPN
Syfy
More stuff
I mean, in their entirety, they're not even as entertaining as the Gong Show, and that's pretty low.
This is going to end badly for everybody.
For you young'uns that blessedly missed it...
This is one of the highlights of the Gong Show.
https://www.youtube.com/watch?feature=player_detailpage&v=yUThxC_mvIE
https://www.youtube.com/watch?v=AoFfLvy3quA
Back when we had three channels we had to endure this shit for years......
I think they are full of shit. What they say and what they do may be entirely two different things. They want the West's ponzi to pop, they know it's coming anyway.
Please accept my deepest apologies, comrade – I meant to write "malicious short-sellers", not "delicious".
Listening to CNBC's special right now "Markets in Turmoil" nothing like hearing that things really are awesome and not nearly as bad as we think. I don't have to think - they'll do that for me!! Sweet.
About 10 years ago I was in a hotel room somewhere on the road (doing 100k+/annum)... I knew the voice! .... Could it be? .... It was!
One of our equity managers telling the world how great things were. Same sthick.
I was standing there dripping wet just out of the shower and rubbed a big wet pressed ham on the screen.
us has had it since 2008. Blowing sunshine up everyones pie hole
Pie hole?
You mean exhaust pipe.
I listened to NPR this afternoon. They were tonguing my ass hole the who trip home.
They tossed my salad.
It felt very good until I came back to reality.
Have you considered starting a website called "Troubling Metaphor of the Day"?
Interesting concept.
National Progressive Radio
General Tso's chicken extra spiceeeeee rules.
MSM, their chicken sux.
I wouldn't be surprised if all the brokerages were having trouble this morning so that people couldn't unload as quick as they wanted. They might have actually saved some people some money. Kind of fucked me as a bear, sure, but oh well, just a few thousand dollars because of motherfucking Scottrade.
Common people like us are not meant to profit from volatility. Let it go, then buy some chickens and plant a garden. You'll be fine, and more importantly, you will learn something.
Yeah, one of my friends is a financial advisor to some high network people and she was saying that the platform they use to execute orders went down. But I agree with the above comment, get chickens and a garden. Thinking of going into farming myself once this shit hits the bottom.
The Obola Admin will have to make some phone calls, soon, plus send Biden back out on the campaign trail. Can't have bad news, everything ia ice cream and cute puppies.
Biden Trump...two clowns looking for thier circus.
Neither one will ever think of throwing bread to the crowds, yet the crowd will elect one of them.
Thou shalt not speak ill of the dead.
Is "Rescue the Disaster" still allowed?
Loose lips sink stawks. Someone talked!
Negative sentiment not allowed huh? Ok. How about... "These equities are going to be 95% cheaper so I can buy a lot!" (optimism)
I think the Chinese have a big paraqde coming up..the end of WWII and the defeat of Japan..that should keep them busy for a few days..
If a Yuan falls in the market and no one reports it, did it happen?
Nikkei is already getting hammered, China opens shortly, oil is selling again but everything looks rosy for US futures somehow. When you compare Asia to Australia looks like a war to me. Why is Australia so happy? Coal prices?
Nikkei has made a miracle turnaround since your post. Close to 700 points down shortly after the open, and is now 222 points to the green. Around a 900 point swing. Amazing!
Must be some good news or BOJ statement I missed.
Looks like this kind of volatility is the new normal.
Well let's be honest, if we were actually allowed to say whatever we pleased all the time we would have no need for the phrase "Freedom of Speach"
But as everyone knows "freedom" is a relevant term.
More interestingly I can only surmise on the strange infiltration of this word Amid. A clumsy phrase, more of a slang term really, that until about 8 months ago was thought to be extinct. Sightings were very rare, mostly due to the range of more sofisticated options in the English language. Yet an observable pattern did emerge across a broad spectrum of landscapes. I pondered this evidence for some time, probing it's appreance, searching for reasoning, but came up empty handed.
Finally I came to the conclusion it was but a joke, similar to the bygone phrases "that's what she said" and "I see what you did there". A fine bit of entertainment to add to the stash of laughs provided by some foolish individual. Good fun indeed.
Humans are so damn stupid. What a joke that government and every other government is.
CNBC is a perfect fit.
What is Streisand in Chinese?
Somehow it's hard to see how China is going to be the next great financial empire. Or any other country, for that matter.
This is what happens with greedy assholes in charge of the planet. My advice is just to ride the wave of stupidity to the bottom. Put on your headphones and make this your collapse theme song!!
https://www.youtube.com/watch?v=rt0-KelIjrU
Hey, precogs, guess what I'm thinking now!
Wait till shadow banking sector fall over due to no good loans on Real estate, its a coming soon, next few months...
Going to be blood on the streets, real blood.
This is just the warmup the Wealth Management products are a true CF.
China, Russia and a fuck ton of other countries make me glad I live in the USA.