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China Devalues Yuan To Fresh 4-Year Lows, Arrests Top Securities Firm Exec As Stocks Slide Despite Rate Cuts

Tyler Durden's picture




 

Update: Chinese stocks are seeing no lift whatsoever from the rate cuts...

CSI-300 is fading fast...

 

And

  • *SHANGHAI COMPOSITE INDEX SLIDES 3.3%
  • *SUGA: HOPE CHINA RATE CUT WILL CONTRIBUTE TO CHINA GROWTH

 

Confusion reigns at Bloomberg also... (look at URL - original title, and compared to title posted at 8pmET)...

And now...

h/t Beermunk

As we detailed earlier:

The Asia morning begins mixed in stock markets, The PBOC explains itself "this is not a shift in monetary policy," - except it is the first such set of measures since 2008, further deleveraging as China margin debt drops CNY1 Trillion from June peak to lowest since March, Regulators begin probing securities firms (and their malicious short sellers), Index futures trading fees will be raised and trading positions restricted. Stocks are limping only modestly higher (after the rate cuts) as Yuan is fixed at 6.4043 - the lowest since August 2011.

 

Yuan fix weaker for 2nd day to new 4 year lows...

  • *CHINA SETS YUAN REFERENCE RATE AT 6.4043 AGAINST U.S. DOLLAR
  • *CHINA LOWERS YUAN FIXING TO WEAKEST SINCE AUG. 2011

 

Before China opens, it's worth noting that all the post-China close, pre-China open exuberance from the PBOC multiple rate cut has been eviscerated...

 

So The PBOC explains why it did something it hasn't done since 2008...

  • *PBOC'S MA SAYS RATE CUTS NOT A SHIFT OF MONETARY POLICY: XINHUA
  • *PBOC'S MA SAYS RATE CUTS TO KEEP MODERATE CREDIT GROWTH: XINHUA
  • *PBOC'S MA SAYS CHINA MONETARY POLICY REMAINS PRUDENT: XINHUA

The rate cut did have some impact...

  • *CHINA ONE-YEAR IRS FALLS 7 BPS TO 2.47%
  • *CHINA ONE-YEAR IRS HEADS FOR BIGGEST DROP SINCE JUNE
  • *CHINA SEVEN-DAY REPO RATE DROPS 25 BPS TO 2.30%

And stocks are only marginally higher..

  • *CHINA'S CSI 300 STOCK-INDEX FUTURES RISE 0.7% TO 2,852
  • *CHINA SHANGHAI COMPOSITE SET TO OPEN UP 0.5% TO 2,980.79

And bearin mind that...

  • *ABOUT 17% OF MAINLAND STOCKS STILL HALTED FROM TRADING

Some more good news as deleveraging continues... lowest since March 2015

  • *CHINA MARGIN TRADING DEBT DROPS 1 TRILLION YUAN FROM JUNE PEAK
  • *SHANGHAI MARGIN DEBT BALANCE HALVES FROM JUNE RECORD HIGH - Balance is lowest since Jan. 12

But more restrictions are put in place:

  • CHINA TO RAISE TRANSACTION FEES ON STOCK INDEX FUTURES TRADING - EXCHANGE STATEMENT
  • CHINA TO RESTRICT TRADING POSITIONS IN STOCK INDEX FUTURES - EXCHANGE STATEMENT

As things are not going well in the Communist intervention - so the probes begin (as ForexLive reports)

The South China Morning Post report that four brokers say the CSRC is probing their business

  • Haitong Securities, GF Securities, Huatai Securities and Founder Securities
  • All made stock exchange statements that they had received notices from the China Securities Regulatory Commission
  • For suspected failure to review and verify clients' identities

Along similar lines, Xinhua reported:

  • 8 people from Citic Securities were being investigated for  possible involvement in illegal securities trade
  • A staff member from Caijing magazine was also being probed for spreading rumours
  • A current and a former staff member at the CSRC  were also being investigated for suspected insider trading

*  *  *

This morning, as China wakes up...

...And realizes that PBOC policy changes have not been working. As BofAML explained,

The combined rate and RRR cuts announced today, clearly targeted to boost A-share market sentiment in our view, may provide some temporary sentiment relief. However, we doubt that this represents the bottom of the market...

 

It appears to us that the government has significantly reduced its direct purchase in the market in recent days and is now trying to replace the direct intervention with the softer, more market oriented, and indirect support. We doubt this will work beyond a few days. As a result, we recommend selling into any rebound. A few things worth highlighting:

  • Psychologically, the cuts may have some impact in the short term because they are the first combined interest rate and universal RRR cuts since Dec 2008, after a sharp market fall. Nevertheless, we doubt the impact will be significant as they are already the eighth cut to either rate or RRR since late 2014.
  • The key overhangs of the A-share market are stretched valuation and high leverage. It’s our view that the only way that the government can hold up the market is by being the buyer of last resort, i.e., the direct support that the government appears to be withdrawing
  • From real economy’s perspective, we doubt monetary loosening is the solution to China main problem – overcapacity/a lack of consumption, and leverage. All it does may be to encourage property speculation, likely using more leverage
  • If the government fails to defend the A-share market ultimately, the key risk we should watch out for is financial system instability.

It's not just BofA that is not buying it... As Bloomberg reports, China’s latest cuts in RRR and interest rates will limited boost to stks, according to most analysts and economists. Move is mainly aimed at supporting economy, not starting another mkt rescue.

DEUTSCHE BANK
Move largely in-line with expectations, reaffirmed leadership’s policy priority is growth support: strategist Yuliang Chang
Stk mkt appears oversold amid “jittery” sentiment
Recommends investors buy H-shrs to position for macro improvement

 

EVERBRIGHT SEC.
Cuts should not be interpreted as beginning of fresh round of strong mkt rescue; move may help stabilize capital mkts though boost to stk mkt will be limited: chief economist Xu Gao
Cuts won’t be able to reverse mkt trend; focus seen returning to macro fundamentals amid valuation bubble burst, deleveraging, pressure from exit of earlier rescue policies
Need for govt to intervene in stk performance greatly reduced after decline in leveraged positions; stk mkt declines posing less threat to financial stability
Mkt rescue policies exited steadily, though at slower pace

 

GUOTAI JUNAN SEC.
Cuts to improve overly pessimistic mkt sentiment, reduce possibility of further accelerated decline in mkt: analysts led by Qiao Yongyuan
Shanghai Composite may trade in range 2,800-3,200 pts
Sees relative gains in:
Stks with high div.: transport, home appliances, auto, financials, property
Low valuation with earnings support: food & beverage, power
Beneficiaries of fiscal policies: rail transit

 

JPMORGAN
Cuts to bring temporary support for stk mkt; earlier correction in stks partly due to disappointment over later- than-expected RRR cut: chief China economist Zhu Haibin
Absence of govt support during recent mkt declines indicate changes in intervention strategy, which is focused more on mkt mechanism restoration than maintaining index level

 

MACQUARIE
Central bank reacted to shore up confidence in stk mkt to stop panic: analysts led by Larry Hu

 

UBS
Cuts signal authorities’ determination of arresting passive tightening and safeguarding financial stability, should help boost sentiment in financial mkts: economists led by Wang Tao

 

BNP PARIBAS
Cuts look like response to panic selling in A-shr mkt, main aim is to support economy: analyst Judy Zhang
Banks to be key beneficiaries of cuts as earnings more sensitive to asset quality improvement than NIM contraction
H-shr-listed China banks present attractive risk/reward for long-term investors

 

CICC
Monetary easing good for valuation recovery in property stks: analysts led by Yu Zhang
Strong momentum in property sales to continue into Sept., Oct. after reduction in mortgage repayment
Buy CR Land, COLI on dips; sees >30% upside in H-shr property players

*  *  *

Putting China's demise into context - off the March 2009 lows...

 

And here's a gentle reminder of who to listen to from now (or not!)...

Charts: Bloomberg

 

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Tue, 08/25/2015 - 21:27 | 6471083 Squid Viscous
Squid Viscous's picture

ho lee fuk, head to the hampsteins at your own risk, alot of angry peasants between you and civilization, Yaphank, Rivah-head, Shirley, Speonk etc.

Tue, 08/25/2015 - 21:30 | 6471113 HonkyShogun
HonkyShogun's picture

Mysterious chemical plant explosions on deck...

Tue, 08/25/2015 - 21:43 | 6471180 tc06rtw
tc06rtw's picture

Those “infinite scroll” webpages are priceless!

After you read the Bloomberg link above: “Goldman Sachs Says There’s No China Stock Bubble, Sees Rally”,  their helpful server feeds you the next story:  China Falls Back on Rate-Cut Lever to Stem Stock Market Rout”!

Wed, 08/26/2015 - 00:51 | 6471614 Publicus
Publicus's picture

China is a country of laws unlike the US where the criminals runs the country.

Wed, 08/26/2015 - 07:25 | 6471993 Freddie
Freddie's picture

Free John Corzine!  oh wait....

Tue, 08/25/2015 - 21:38 | 6471157 brucekeller
brucekeller's picture

3000 promoted to -  Resistance

ahhh SUM TING WONG! 

^_^ 

Tue, 08/25/2015 - 21:49 | 6471198 Stormtrooper
Stormtrooper's picture

Build a wall around the Hamptons border to keep the illegals (plebs) out.

Wed, 08/26/2015 - 02:30 | 6471735 Hyjinx
Hyjinx's picture

I'll be waiting for that asshole on Montauk Highway....

Tue, 08/25/2015 - 21:25 | 6471086 Kaiser Sousa
Kaiser Sousa's picture

"they're all over me...get'em off my ass...."

Tue, 08/25/2015 - 21:30 | 6471098 One And Only
One And Only's picture

Why isn't there a global law passed where all sell orders are converted to buy at higher price orders with margin automatically added to the account via central bank QE? Everyone who  takes a short position is automatically converted to OTM call options.

Let's stop fucking around and get to work. This is how we get equities higher. We can call it something like the SchumerYellen Directive.

Tue, 08/25/2015 - 21:32 | 6471125 Tallest Skil
Tallest Skil's picture

1. The concept of "global law" is ludicrous nonsense and should never be entertained.

2. The only "global" law should be a universal ban of usury, independently implemented by every country.

Tue, 08/25/2015 - 21:41 | 6471134 One And Only
One And Only's picture

It should be entertained if central planners want equities to rip day after day with no more down days and where everyone's 401k grows by 100% everyday.

You have a better idea than banning short selling or arresting people who sell? Because US and China has done that.

Tue, 08/25/2015 - 23:44 | 6471511 DeadFred
DeadFred's picture

The strategy is to print loads of money each day and buy enough stocks to insure they all rise. After enough time you not only insure the index has gone to the moon but you own EVERY company. I don't know why it took them so long to figure this one out.

Tue, 08/25/2015 - 23:16 | 6471443 worbsid
worbsid's picture

HFT traders never have down days; they make money both ways.

Tue, 08/25/2015 - 21:28 | 6471099 nmewn
nmewn's picture

Well, the margin debt is forming another nice little shoulder, so there is that! ;-)

Tue, 08/25/2015 - 21:29 | 6471107 pachanguero
pachanguero's picture

I repeat...Here in Thailand the biggest fucking property bubble ever is bursting.

 

Generational bubble going pop and the Thai's will get monkey hammered.

Fuck the banksters!

Tue, 08/25/2015 - 21:51 | 6471167 JenkinsLane
JenkinsLane's picture

Do you have a downside percentage and time target?

Tue, 08/25/2015 - 21:29 | 6471110 The Bell Rang
The Bell Rang's picture

Clueless......as in totally Dude...lol

Tue, 08/25/2015 - 21:30 | 6471111 tarsubil
tarsubil's picture

China is a well oiled machine.

Tue, 08/25/2015 - 23:16 | 6471445 ThroxxOfVron
ThroxxOfVron's picture

Well oiled around the anus...

Tue, 08/25/2015 - 21:32 | 6471124 Deus Irate
Deus Irate's picture

In a nut-shell the Chinese are checking out. Shit just got real. I wonder what sort of criminality our fiscal overlords will use to paper over this mess?

Tue, 08/25/2015 - 21:35 | 6471135 new game
new game's picture

last chart says it all; merica look out below, long ways to go/ s and p 1500 here we cum...

retrace to 1100...

Tue, 08/25/2015 - 21:35 | 6471145 Apostate2
Apostate2's picture

From the article: 'Some more good news as deleveraging continues... lowest since March 2015'.

When you weren't looking that pea went under a different shell. Keep playing, you will spot it.

Tue, 08/25/2015 - 21:38 | 6471149 Goldilocks
Goldilocks's picture

Brace! Brace! Brace!
(Shake, Shake, Shake) Shake Your Booty - KC & The Sunshine Band (1976)
http://www.youtube.com/watch?v=N1YXcD0njts (3:03)

Wed, 08/26/2015 - 01:37 | 6471678 tarabel
tarabel's picture

 

 

You ought to be shot for summoning disco into any argument whatsoever.

But I'll get even with you with this teenie-bopper cover.

https://youtu.be/OQf-N46oblw

Take that!

Wed, 08/26/2015 - 05:04 | 6471856 ThroxxOfVron
Tue, 08/25/2015 - 21:36 | 6471150 H H Henry P P P...
H H Henry P P P Paulson's picture

Why is it all the restrictions, probes, freezes, law enforcement, and government interventions ONLY happen when your market is going down?

Wed, 08/26/2015 - 05:08 | 6471858 ThroxxOfVron
ThroxxOfVron's picture

 

 

Because... tanks in the streets!

Tue, 08/25/2015 - 21:37 | 6471152 Yen Cross
Yen Cross's picture

  Based on the way oil and commodities have been in a protracted year long selloff, I think we're probably headed into a similar trend with the equity indexes.

 In '08 there was much less liquidity, and CB manipulation then we have currently.

 My guess is that we're going to have a long protracted slide, with lots of dead cat bounces, as opposed to a massive 5-6 month event like the GFC in late '07 into mid '08.

 However, many things could change that scenario overnight. [eg; wars, currency or land based.]

Tue, 08/25/2015 - 21:41 | 6471170 new game
new game's picture

wise comment. totally agree. the great unwind.

it will be fought but just to much debt and not enough quality collateral.

HAPPY DAYS ARE HERE AGAIN, markets working, ha, just plain ole fear...

Wed, 08/26/2015 - 01:32 | 6471676 Consuelo
Consuelo's picture

 

"However, many things could change that scenario overnight. [eg; wars, currency or land based.]"

 

Oh yeah...

Tue, 08/25/2015 - 21:52 | 6471193 Squid Viscous
Squid Viscous's picture

Golem Sachs desk making billions off this puke, any doubters? they raked in ridiculous M&A $, then pulled the plug, same as 2007/08

Tue, 08/25/2015 - 23:26 | 6471450 ThroxxOfVron
ThroxxOfVron's picture

When Goldman loses Goldman lies and gets bailed out.

Truth came out not too recently that their losses in 2008 were more than twice what was publicized.

They were totally Lehmaned, DONE, Dead-In-The-Water before their cronies at Treasury and The FED pulled AIG, cranked up the Maiden Lane conduits, and pushed Kanjorski to suspend M2M accounting..

Blankfein should be working a fruit stand somewhere in Harlem.   His wealth is 100% stolen.

Tue, 08/25/2015 - 21:55 | 6471217 bnbdnb
bnbdnb's picture

SHCOMP crashing already, LOL. down 2%

Tue, 08/25/2015 - 22:02 | 6471246 Sorry_about_Dresden
Sorry_about_Dresden's picture

I'm pretty sure the YUAN will have to move the other way when it all plays out. The USD and Renminbi should be at parity, eventually, or better.

I am betting against the USD in the long run and I think China is going to serve up some pain to US Treasury.

I has to happen!

Tue, 08/25/2015 - 22:11 | 6471267 Montani Semper ...
Montani Semper Liberi's picture

After watching the SHCOMP the last couple of months, I have noticed the market moves either straight up or straight down. Except for last Monday morning when most of the stocks had gone limit down, it never moves along horizontally in a relatively unchanged fashion.

 That's all I got, just an observation.

Tue, 08/25/2015 - 22:20 | 6471288 pauhana
pauhana's picture

I want to build a pyramid of the tied up bodies of all those who are still screaming that this is a buying opportunity.  Gimme a match!

Tue, 08/25/2015 - 22:37 | 6471331 xcehn
xcehn's picture

Down >1 percent, and choppy.

Tue, 08/25/2015 - 22:42 | 6471345 Spiritof42
Spiritof42's picture

There was a time when I didn't think they would have been stupid enough to copy the Wesern banking ponzi system. 

Tue, 08/25/2015 - 22:51 | 6471370 thismarketisrigged
thismarketisrigged's picture

not that this is breaking news by any stretch, but geez, there is zero liquidity in the u.s futures ''market''.

 

the pt swings in each index futures is crazy.

 

s&p futures fluctuating between down 12 pts top p 2 pts within 2 minutes, and its happening over and over.

 

one sec dow futures r down 90, then next second they r down 10. this shit is retarded

Wed, 08/26/2015 - 01:01 | 6471631 OldPhart
OldPhart's picture

I think the algo's are reacting to the swings in Asia.  That's why there's the huge fluctuations.  (Chinese lady yells 'Fluck you, white mothel flucker !!")

Flipping back and forth on MarketWatch, that's what it looks like.

Tue, 08/25/2015 - 22:52 | 6471372 q99x2
q99x2's picture

Good idea. Outlaw markets and give those banksters the world's corporations and let's have a global revolution against bankster occupation (Go Max)

Tue, 08/25/2015 - 23:00 | 6471393 Tsar Pointless
Tsar Pointless's picture

I'm seriously, honestly, no shitting 100% for that.

No more stock markets. No more debt merchants.

Wed, 08/26/2015 - 01:05 | 6471639 OldPhart
OldPhart's picture

Seems to me, a long, long time ago, the stock market served a purpose similar to GoFundMe.  Only it had liquidity in that you could take your donation in the form of a piece of paper and sell it to someone else that wanted to be part of the company more than you did.  The company benefitted from your IPO contribution and used the funds to buy capital and expand and make shit and hire people and do stuff that was wanted and needed by millions of people.

Your exchange of the contribution to another person was a simple matter.  You offered to sell, they offered to buy, and the market put you two together to haggle a price.

I miss those days...

Wed, 08/26/2015 - 01:10 | 6471647 neilhorn
neilhorn's picture

Absolutely, this is the greatest idea evar. Outlaw markets so that nobody can ever buy or sell again. Everyone can make his own food and stuff that he needs, and capitalists can fuck off.

Tue, 08/25/2015 - 23:06 | 6471403 e_goldstein
e_goldstein's picture

Confucious say: Dead cat bounce makes a moar tender General Tso's chicken.

Wed, 08/26/2015 - 01:03 | 6471634 neilhorn
neilhorn's picture

Gen. Tso: A great general who loved chickens, cats and dogs when he could get them,

Tue, 08/25/2015 - 23:04 | 6471404 Tsar Pointless
Tsar Pointless's picture

I remember following the 2007/08 financial crisis deep into the nights on TickerForum. Three things have changed since then: 1) It's China, not Japan, we watch each night; 2) I'm no longer on TickerForum, I come here instead; 3) I'm too old to stay up until 2 a.m. every night.

I guess those who say "It's different this time" are right in those aspects. Outside of that, not so much.

Tue, 08/25/2015 - 23:16 | 6471441 adr
adr's picture

I feel bad for the Chinese. When I was there last October I saw the beginning signs of equity mania. I wrote about it last year on Zerohedge. I said the people of China were starting to see the stock market as a path to wealth over hard work. The catalyst was Jack Ma becoming China's richest person overnight with the Alibaba IPO. The factory owners were seeing orders plummet, business was being outsourced to cheaper Asian countries and ghost towns were everywhere. I said that the stock market would destroy China. I wasn't wrong.

Massive layoffs led to people seeking wealth any way they could find it. Real Estate was no longer growing and investments were sparse. The Tribal money hunters were there ready and waiting. They lured the suckers in by the millions. A stock rally was engineered and that lured in millions more.

A few factory owners I talked to said they wouldn't ever get back in the market after they almost lost everything in the prior crash. One factory rep asked me what I thought. I told him to stay away from the markets. I said you can get lucky and make a lot of money, but if your timing is wrong, you'll be wiped out. I saw him last month and he said he was glad he listened and stayed out of the market. He had associates who lost everything. They booked their gains and then invested everything back in at the top, thinking they would double or triple their money again.

It is never bad advice to stay out of the stock market. Like gambling, only invest what you are willing to lose. If you do get lucky, book the gains and get out. If you go back in, only invest your profit minus 20%. That way if you are wiped out, you still have something left. Gamble with your winnings, not what you brought to the table.

Tue, 08/25/2015 - 23:49 | 6471519 xcehn
xcehn's picture

and it's green now....chicom ppt or intimidation ?

Tue, 08/25/2015 - 23:18 | 6471446 Hongcha
Hongcha's picture

Wi wei wei tu lo.

Tue, 08/25/2015 - 23:27 | 6471470 roodeetoodee
roodeetoodee's picture

Desperately in need of some strangers hand,

In a desperate land.....

 

Wed, 08/26/2015 - 01:08 | 6471644 OldPhart
OldPhart's picture

That's $20, $40 if you want lube...

Tue, 08/25/2015 - 23:34 | 6471490 Chosenpeople
Chosenpeople's picture

I was watching some tv of some China woman being interviewed about the Chinese stock market.  She kept saying she believed that the government was supposed to intervene, and wondered out loud why is the government not keeping the stock market up.  I had to laugh.  Some people are just plain idiots.

Wed, 08/26/2015 - 00:19 | 6471572 roodeetoodee
roodeetoodee's picture

Was that one about Hoo Song Lee, the restaurant owner who lost 10K and now can't afford to expand her business? If so I saw it too and had to laugh as well.

Not because she got burnt but just because she was genuinely perplexed at how she could have lost money.

I think that interview finally bought home to me why so many are claiming National Team intervention is a must in order to prevent riots in the streets.

These people appear(ed) to have absolute faith in their government which is both highly remarkable and absurdly pathetic at the same time.

 

Wed, 08/26/2015 - 04:51 | 6471846 Bangin7GramRocks
Bangin7GramRocks's picture

Sounds like 99% on Wall Street and 100% on CNBC. Only difference is our American idiots demand the gubmint do something to keep the stock prices up!

Tue, 08/25/2015 - 23:46 | 6471516 Seasmoke
Seasmoke's picture

Hey China. It's time. To go for the Gold. What the fuck are you waiting for.

Wed, 08/26/2015 - 00:56 | 6471624 neilhorn
neilhorn's picture

One thing the Commies got right in the past century: A bullet to the back of the head is fast, clean, and painless.

Hope is that price of bullets are affordable.

Wed, 08/26/2015 - 01:36 | 6471680 MSorciere
MSorciere's picture

The Yuan devaluation was putting the noose around the neck of the carry trade.

 

The rate cut was kicking away the stool.

 

Hot money returns to Hong Kong (whatever is left of it).

 

CITIC et al arrested for executing too many SELL orders?

 

To George Chen:  Can you imagine if NYPD arrested top banker at Goldman Sachs?

 

George, we only dream about those bastards being arrested.

They sure have commited enough felonies over the past 8 years...

Wed, 08/26/2015 - 02:09 | 6471704 gmak
gmak's picture

Some information for those who are wondering if the G7 are acting in concert.  

Tokyo opens at 9am (8PM NYT) and closes at 3PM (2AM NYT). 8PM NYT is when the e-minis started their green march up today (yesterday as well).  Yesterday, they fell a bit aroun 1AM NYT - someone took their finger off the buy button. Today it leveled off but didn't fall.

As Tokyo closes, Frankfurt opens. It's hours are 8AM (2AM NYT). Many other European markets open 1 hour later, including London. You can see that Yesterday, this is when the green march started up again (2AM NYT) with a slight slip just before London and the rest opened. 

NY opens at 9:30AM which is 2:30PM in London.  London closes at 4:30PM local time which is 11:30 in NY.  These 3 CBs can sustain the rise - with help from smaller CBs here and there - but if they take a break (and near NY close) - it seems that those who want to get out of the burning room dump shares into the NY close. 

 

The CBs do the heavy lifting from when Tokyo opens at 8PM NYT until about 3PM NYT. I think maybe K-Hen and Yellen will stay in the Gopher wheel a little longer today and we will see the dump after the NY close. (Just a speculation).

 

If I'm right, then we will see some sideways from 2 - 3AM NYT and then a resumption of the march upward on low volume.

Wed, 08/26/2015 - 02:49 | 6471760 Bazza McKenzie
Bazza McKenzie's picture

Correction to Bloomberg's statement:

"It appears to us that the government has significantly reduced its direct purchase in the market in recent days and is now trying to replace the direct intervention with the softer, more market oriented, and indirect support of arresting brokers and offering the Ghaddafi treatment to everyone who sells stock"

Wed, 08/26/2015 - 03:24 | 6471788 Non Passaran
Non Passaran's picture

What would Mao do?

Wed, 08/26/2015 - 05:14 | 6471863 ThroxxOfVron
ThroxxOfVron's picture

Mao would probably have everyone with a laptop or cell phone slaughtered.

Wed, 08/26/2015 - 03:35 | 6471792 Bernoulli
Bernoulli's picture

Meanwhile at the stock markets:


Shanghai Comp  
June 2015 index highs: 5166
8 July 2015 post-peak low: 3507
Thursday 20 August Close    3664  
Tuesday 25 August Close    2965  
Wednesday 26 August Close    2927
26 August 2015 "performance"    -1.3%
Last 4 trading days "performance" -20.1%  
Total crash since June    -43.3%   

CHINEXT  
June 2015 index high: 3943
7 July 2015 post-peak low: 2352  
Thursday 20 August Close    2509
Tuesday 25 August Close    1991
Wednesday 26 August Close    1890
26 August 2015 "performance"    -5.1%
Last 4 trading days "performance" -24.7%
Total crash since June    -52.1%

Shenzhen Comp
June 2015 index highs: 3140
8 July 2015 post-peak low: 1884
Thursday 20 August Close:    2155
Tuesday 25 August Close:    1749
Wednesday 26 August Close    1696
26 August 2015 "performance"    -3.0%
Last 4 trading days "performance" -21.3%
Total crash since June    -46.0%

Absolutely abysmal.

NEED. A. BIGGER. BAZOOKA.

www.denk-bubbles.com/bazooka

Wed, 08/26/2015 - 03:58 | 6471815 Apostate2
Apostate2's picture

Xu Gang (5 miliion yuan man and bright star and eight others at Citic) was according to one report, shopped by a colleague shouting, 'Jiùshìch?ng jiùshì jiù zìj?' (save the market is to save yourself) because of an alleged self-play margin trading in a large proportion of the RRR, CIC, SAFE, SAFE-owned holdings in Hong Kong stocks. We shall see.

Wed, 08/26/2015 - 05:14 | 6471862 jcdenton
jcdenton's picture

Tyler(s), handle this as you like. Your blog. Your prerogative ..

 

Tianjin was nuked. It was their 9/11, on 8/12. We do have the proof. The science. The math. Everything. Courtesy of a former DOE and IAEA nuclear scientist ..

http://www.veteranstoday.com/2015/08/25/confirmation-tianjin-was-nuked/

Jeff Smith – Nuclear Physicist, is a former a nuclear weapons specialist with the Department of Energy and UN (IAEA) weapons inspector specialising in nuclear nonproliferation issues. He is now cryptographic curator and historian, preserving classified documents involving nuclear weapons research.

http://www.veteranstoday.com/staff-writers/

This is further important to really understand what is happening in the markets and the  overall global economy. At Tianjin [Port of] was a supercomputer datacenter. From this datacenter a cyberattack was performed on the NYSE et al on 7/8. That was our "glitch." This was in response to a cyberattack on the Shanghai Exchange beginning on 6/12. This attack was courtesy of US Army Intelligence at Fort Huachuca, AZ ..

http://www.veteranstoday.com/2014/07/02/us-army-declare-war-on-free-media/

What happened the day before the blast? You know that answer. The blast was a direct consequence of that 11th day ..

Black Monday was the day of unraveling of it all. I then give you the esteemed Jim Sinclair ..

https://youtu.be/u7tTdO6oxUA

Now Sinclair talks about "reset." If you go back the VT staff/writers link, in the same section as Smith is also listed -- Leo Wanta. Put someone on your research staff to listen to this 2 hour conversation ..

https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp (begin with the smaller audio file, which is the last 11 minutes of the 2 hour complete discussion. treat it as a teaser.)

Then start devouring all you can. This is what is going to happen post reset. It will be messy at first. But there is a light at the end of the tunnel ..

Start by clicking on Leo Wanta in the Advisory Board section. This gives us the genesis of the problem. The nature of terrorism since at least 1913. [1] Not just in the USA, but the entire world at large, when we comprehend how the USG/Banksters double-crossed not just the PRC, but also the ROC, more than once, over a period of years. We are now feeling blowback.

Continue here ..

http://www.veteranstoday.com/?s=wanta

No one can understand what happens next, without understanding the remaining living member of the task force, of what was called Operation Stillpoint, employing a literal James Bond type secret agent, under the Totten Doctrine (1876) ..

Deceased members of TF (Stillpoint)

William Colby - DCI

William Casey - DCI

Vernon Walters - DDCI

William French Smith - Atty. Gen.

Ronald Wilson Reagan - POTUS #40

 

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[1] Believe me, we are just scratching the very tip of the iceberg. In between this, is non-esoteric deeper analysis and amplification. Deeper, is the esoteric realm ..

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