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China Is Proud To Announce It Is Reflating The Bubble - Will "Actively Push" Investors Into Stocks

Tyler Durden's picture





 

We did a double take when we read the following lead sentence from a just released Bloomberg report on what is about to take place in China: "China’s stocks regulator will “actively” push pension and housing funds to begin investing in capital markets, and encourage long-term investors such as insurers and corporate pension plans to buy more shares." To paraphrase Lewis Black - we will repeat this, because it bears repeating - "China’s stocks regulator will “actively” push pension and housing funds to begin investing in capital markets, and encourage long-term investors such as insurers and corporate pension plans to buy more shares." And that is the last ditch effort one does when one has no choice but to push "long-term investors" into the last giant ponzi. Of course, this being China, "long-term investors" means anyone at all, and "pushing" ultimately involves either 9MM or a 0.44 caliber. And what was said earlier about mocking mainstream media spin - well, the first opportunity presents itself a few short hours later - when Bloomberg, the same agency that wrote the above report, tells us that "Asian Shares Rise Amid Global Economic Optimism." Odd - no mention of the fact that China is now pushing habitual gamblers, which over there is another name for "investors" into what is openly an invitation (at gunpoint nonetheless) into the latest and greatest bubble. That said, we give this latest artificial attempt to boost stocks a half life of several days max before the SHCOMP plunges to new lows for the year.

More on this hilarious attempt at reponzification:

The China Securities Regulatory Commission will also allow the creation of sovereign debt futures and explore other new products such as high-yield corporate bonds and municipal debt, the regulator said in a statement on its website yesterday, citing Chairman Guo Shuqing’s comments during a national work conference in Beijing.

 

Guo, appointed Oct. 29, told securities officials China needs “systemic arrangements” to channel cash into under- funded areas and sustain growth. He echoed Premier Wen Jiabao’s message at last week’s financial work conference that the finance industry should serve the real economy.

 

The Shanghai Composite Index tumbled 22 percent last year, the most since 2008, on concern increases in borrowing costs and Europe’s debt crisis would derail economic growth. The 33 percent drop since 2009 makes the benchmark the worst performer among the world’s 15 biggest markets.

 

China should make investments using the 2 trillion yuan ($317 billion) in pension funds from its provinces and 2.1 trillion yuan in housing funds, Guo said at a conference in Beijing Dec. 15, without indicating where the money should go.

This explains the surge in US exports recently and the relative economic strength - it appears America has been exporting financial innovation (such as high yield corporate bonds and municipal debt) double time to Shanghai. Which in turn was tolled by domestic child labor sweatshops and resold to US investors via E*Trade and Schwab as quadruple levered ETFs.

And the kicker:

In a continuation of his predecessor’s policy, Guo pledged to “earnestly” tackle excessive initial public offering prices and to crack down on insider trading and market manipulation, according to the statement.

Chinese fraud? Unpossible.

Needless to say, this act has sown the seeds of the Great Chinese Stock Market Collapse: artificial and forced capital reallocation is always and without fail the coffin in the nail of any ascendent attempt at central planning. Of course, by then the global ponzi will have reach such dire proportions that somehow the ECB will lend money to Greece so that Greece can bail out China, because it is not in ECB's charter to bail out insolvent ponzi regimes (such as Europe of course). Or something just as ludicrous.

 


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Tue, 01/10/2012 - 01:35 | Link to Comment ACP
ACP's picture

So they're finally learning from Bernanke, bitchez?

Tue, 01/10/2012 - 02:13 | Link to Comment trav7777
trav7777's picture

huh?  The chinks have a 30 year track record of this. 

why the fuck is everything everyone else does somehow OUR fault?

Tue, 01/10/2012 - 02:22 | Link to Comment ACP
ACP's picture

It's not. It's Bernanke's fault.

That stupid god damn fucking cocksucker shit sucker bitch fuck is raping our bank accounts and then shitting in our cereal bowls. I can clarify further...

Tue, 01/10/2012 - 03:33 | Link to Comment eureka
eureka's picture

Obviously it is the US bankster elite's fault. The Ivy Ilk Fi-Alpha Scum who run US Empire.

EVERYONE is learning from US EMIRE Keynes'ianism.

NO surprise at all.

Blowback, Bitchez.

Tue, 01/10/2012 - 05:22 | Link to Comment Michael
Michael's picture

There is nothing in the known universe that can stop a super nova sized Chinese housing bubble from continuing to burst, as it has been bursting for many months so far.

In other news;

Why is everybody focused on the veterans unemployment rate?

Unemployment Rate Improved for Everyone in 2011, Except for Blacks

http://colorlines.com/archives/2012/01/unemployment_rate_improved_for_everyone_in_2011_except_for_blacks.html

Tue, 01/10/2012 - 05:31 | Link to Comment Michael
Michael's picture

Dr Ron Paul's bodyguard Jesse Benton not only has brawn, he's got brains too and knowns how to use them. I wonder if he's married?

Jesse Benton ends interview with belligerent Dana Bash.mov

http://www.youtube.com/watch?v=hDlY5UKY9CM&feature=youtu.be

Tue, 01/10/2012 - 06:02 | Link to Comment Michael
Michael's picture

If we have to run Ron Paul again when he's 84 in 2020, we'll glide him out in a hover chair. A very comfy hover chair. With WIFI and Internet, and a cup holder.

Tue, 01/10/2012 - 07:01 | Link to Comment fockewulf190
fockewulf190's picture

...and with Stephen Hawkings voice simulator when needed.

Tue, 01/10/2012 - 05:59 | Link to Comment HD
HD's picture

Maybe I'm getting old - but I watched the clip a couple times and couldn't hear/understand her question... what was it? Thanks.

Tue, 01/10/2012 - 07:25 | Link to Comment economics1996
economics1996's picture

The reporter gave a BS question about a voter who was not able to shake RPs hand so the voter became Democrat. Fucking BS question.

Tue, 01/10/2012 - 12:13 | Link to Comment HD
HD's picture

Seriously?  Sadly this is how many voters make important decisions...

Tue, 01/10/2012 - 20:28 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Big picture it is meaningless.

Tue, 01/10/2012 - 07:56 | Link to Comment LouisDega
LouisDega's picture

Im confused. What does this have to do with the price of stocks.. I meant tea in china? Do Jesse Benton and Ron paul buy stocks or are they short?

Tue, 01/10/2012 - 09:38 | Link to Comment LouisDega
LouisDega's picture

Fu manchu is enlightened. Thanks

Tue, 01/10/2012 - 22:44 | Link to Comment ucsbcanuck
ucsbcanuck's picture

Wow, talk about biased reporting against Ron Paul. Then again Kyle Bass got the same BS.

Tue, 01/10/2012 - 06:24 | Link to Comment TGR
TGR's picture

"There is nothing in the known universe that can stop a super nova sized Chinese housing bubble from continuing to burst, as it has been bursting for many months so far."

Kinda like how a balloon or soap bubble bursts over several days, right?

Tue, 01/10/2012 - 09:13 | Link to Comment trav7777
trav7777's picture

so the ponzi bubble being run by chinks in china for their own benefit is our fault too?

they have no complicity in it whatsoever?

Tue, 01/10/2012 - 02:46 | Link to Comment a4ln143c2001
a4ln143c2001's picture

even though what you said is true..chinks is an extremely offensive word to chinese people

Tue, 01/10/2012 - 04:28 | Link to Comment SecondAdamWon
SecondAdamWon's picture

Also, Dude, Chinamen is not the preferred nomenclature. Asian American, please.

Tue, 01/10/2012 - 08:21 | Link to Comment jcaz
jcaz's picture

excellent Lebowski reference, dude....

Shut the fuck up, Donny.

Tue, 01/10/2012 - 08:50 | Link to Comment Urban Redneck
Urban Redneck's picture

Chink or Chinamen might be less offensive to the BILLION PLUS CHINESE WHO DON'T LIVE IN THE US than Asian-American, depending on how low their opinion of the US is.  Regardless, its better to be in the ballpark yet offensive than flat-out wrong.

Tue, 01/10/2012 - 04:49 | Link to Comment ZeroPower
ZeroPower's picture

Chinese fraud? Unpossible.

IMPOSSIBRU

Tue, 01/10/2012 - 06:27 | Link to Comment Matevski
Matevski's picture

Sam ting wong nao agen?

Tue, 01/10/2012 - 06:11 | Link to Comment Colonial Intent
Colonial Intent's picture

Coz USA is in charge of the world, USA has to destroy any state that drops dollar otherwise......the sheep will start surrounding the wolf.

Tue, 01/10/2012 - 07:13 | Link to Comment economics1996
economics1996's picture

Oh fuck the odds of war go up by the day.

Tue, 01/10/2012 - 09:46 | Link to Comment tmosley
tmosley's picture

*Thinks using the "n-word" is racist.

*Claims not to be racist.

*Calls Chinese "chinks".

Tue, 01/10/2012 - 08:26 | Link to Comment slaughterer
slaughterer's picture

Be careful.  This article is not necessarily about QE, but about market regulation.  It is the market regulator speaking not the head of the CB.  The exact words were in Chinese, and they were translated by an organization with an agenda.  The word "actively push" might not be an accurate rendition.    

Tue, 01/10/2012 - 10:31 | Link to Comment Future Tense
Future Tense's picture

China is going to slow due to a collapse in exports to Europe due to their austerity this year.  No amount of pension buying is going to change that, especially in the face of a collapsing real estate market which makes up about 50 percent of their GDP.  Good discussion on the China bust here:

http://www.ftense.com/2012/01/2012-outlook-global-butterly-effect.html

Tue, 01/10/2012 - 01:35 | Link to Comment Saxxon
Saxxon's picture

Not even slightly surprising.  My wife told me that when the PRC first started selling bonds to the People, they were suspicious.  So the Party simply made them buy bonds.  It was for their own good.  They paid well and often (8-12% depending on duration).

Unadulterated Fascism.  Did you ever think it was anything else?  The Party does not even bother to mask it or spray Lysol on it, as here.

Tue, 01/10/2012 - 05:44 | Link to Comment fockewulf190
fockewulf190's picture

Hmmm. Ponzi is so western. How about Pon-Zi-Yuan? ; )

Tue, 01/10/2012 - 07:12 | Link to Comment CPL
CPL's picture

That's what I understand as well from ex-chinese nationals I've have the opportunity to have a pint with.  The paychecks get spread fairly thin with government initatives like this.

 

In a country that is having trouble meeting food demand, the little bites the Chinese government takes from the people's paychecks is only going to make more protests happen.  Between diesel shortages, gas capping, food shortages, brown outs (for now) and a metric shit tonne of empty property.  There isn't a nickle to be thrown into china.

 

My best guess is the earnings month They are going to over stoke it.  Of course there is the large possibility that the boiler explodes while doing it.  Of course, in terms of funny money, the Chinese and the Americans will just virtually increase the size of the boiler by dropping interest rates lower into  micro fractions if need be.

Tue, 01/10/2012 - 07:41 | Link to Comment onthesquare
onthesquare's picture

When did China denounce its communist ideology?

These people are endentured slaves and the government has realized that they have given them too much money and freedom.  It is now time to call in some overpay.  After all the government believes they own all the people, property, legal tender, gold, etc. See what happens when they begin to nationalize western factories.  WWIII here we come

Tue, 01/10/2012 - 01:39 | Link to Comment blu
blu's picture

Benny B must weep with frustrration when he thinks about how centrally centralized is the ChiCom centralized economic planning.

All this messy congressional oversight and rule of law horseshit -- hardly what a central banker wants to deal with day in and day out, but the shitty West just can't get its act together seems like.

Such round-about stupidity. Better to just hold a gun to peoples' head with the admonition to sure go ahead and do whatever feels right with your own money.

Tue, 01/10/2012 - 01:48 | Link to Comment Troll Magnet
Troll Magnet's picture

we have rule of law? we have oversight??? GET DA FUCK OUTTA HERE!!!

Tue, 01/10/2012 - 02:10 | Link to Comment blu
blu's picture

It doesn't seem like it but we do.

Okay actually they sorta mis-placed the Constitution, trampled on everyone's rights, emptied the Treasury for the benefit of the oligarch class, and maybe froze Eric Holder in carbonite. On accident.

But apart from that yeah it's all good. Benny has to toe the mofo line. Just like that.

Tue, 01/10/2012 - 05:55 | Link to Comment fockewulf190
fockewulf190's picture

Imagine a chinese version of Ron Paul grilling party officials about financial ineptitudes ala Bernank. He'd be taken away, neck shot, and the family charged for the bullit.

Tue, 01/10/2012 - 09:10 | Link to Comment NoClueSneaker
NoClueSneaker's picture

... delay time. Putting a lipstick on a pig takes time, that's all. Pig stays a pig, chinese or american, doesn't matter.

PBoC butchers can slaughter the pig faster than in the

FedBernank Facility, or at Goldman-am-Main, that's all.

 

Tue, 01/10/2012 - 02:11 | Link to Comment ACP
ACP's picture

China Dictatorship = execution for dissent.

US Dictatorship = lose your job, family, identity and any and all sense of humanity for dissent.

The difference isn't that big.

Tue, 01/10/2012 - 03:41 | Link to Comment Tompooz
Tompooz's picture

The difference is that when a Chinese family with some money decides to get out of dodge, they do not find banks in their country of destination unwilling to open an account for them.

Tue, 01/10/2012 - 07:30 | Link to Comment hamurobby
hamurobby's picture

Scientist who argued against global warming would agree.

Tue, 01/10/2012 - 08:36 | Link to Comment Fred C Dobbs
Fred C Dobbs's picture

Alex Jones said David Rockefeller loved what he saw there in his 1973 trip.  

Tue, 01/10/2012 - 13:20 | Link to Comment KK Tipton
KK Tipton's picture

Maurice Strong loved it so much he moved there:

http://www.canadafreepress.com/index.php/article/23141

Now, there was that little matter of the $1,000,000 payment by check from the UN.
Where else would you go till the heat is off?

"The 78-year-old Strong, who seemed to disappear from the international radar screen when his name became linked to the United Nations Oil for Food scandal in 2005, went to live quietly in China, a country he has long touted as the superpower poised to replace the United States of America."

Dude is an undercover eugenicist:
Maurice Strong Interview (BBC, 1972) - YouTube - http://bit.ly/wd4Ixo

Also owns Crestone, Colorado. His new age hideout:
https://en.wikipedia.org/wiki/Crestone,_Colorado
Maurice Strong, owner of a controlling interest and his fiancée Hanne Marstrand visited the development and "fell in love with it." The Strongs were inspired to create a world spiritual center and began granting parcels of land to traditional spiritual organizations.

But he might be on the way out, taking his carbon footprint with him:
http://www.canadafreepress.com/2007/cover051707a.htm

Tue, 01/10/2012 - 01:40 | Link to Comment qussl3
qussl3's picture

All in with a 2-9 off suit, whoop dee doo.

How long till they are called on it?

Tue, 01/10/2012 - 01:40 | Link to Comment Gubbmint Cheese
Gubbmint Cheese's picture

Hahaha... Good luck China

Tue, 01/10/2012 - 01:44 | Link to Comment chump666
chump666's picture

China will get hyper inflation before the US.  Who would have thought.  And we know what the Chinese are like, they will flee the YUAN in droves, buy USD and throw everything else into stocks.  China is actually creating WEIMAR style...by design.  Amazing stuff. 

 

Tue, 01/10/2012 - 01:47 | Link to Comment qussl3
qussl3's picture

They wont be buying stocks, those with any wealth know its all BS, at the drop of the hat the state could reappropriate it all.

Wealth is going offshore or into PMs.

 

Tue, 01/10/2012 - 02:00 | Link to Comment chump666
chump666's picture

The Chinese are the worst investors on the planet.  So I would not be surprised they sell off their currency on mass and throw it all into stocks get this massive rally and a HUGE spike inflation.  Amidst EZ going to hell, US falling to pieces in 2012.  Topped off with China completely imploding, then war.  Timeline?  Within 12mths

 

Tue, 01/10/2012 - 02:05 | Link to Comment chump666
chump666's picture

...or maybe less.  Anyone got odds on global war? 

Tue, 01/10/2012 - 02:11 | Link to Comment Harlequin001
Harlequin001's picture

The way Iran's going I'd say around 20 mins...

Tue, 01/10/2012 - 02:14 | Link to Comment chump666
chump666's picture

LOL...

Tue, 01/10/2012 - 02:37 | Link to Comment Hephasteus
Hephasteus's picture

I'll take 5 dollars on 1913. I win. Haha.

Tue, 01/10/2012 - 06:16 | Link to Comment francis_the_won...
francis_the_wonder_hamster's picture

"The Chinese are the worst investors on the planet"

Yikes!!!

There is some stiff competition for this award. 

Maiden Lane is one of my favorites.....buy stuff nobody can price at full price, hold it to maturity, and hope nobody is still around who remembers when it all "matures".

Tue, 01/10/2012 - 07:55 | Link to Comment spankfish
spankfish's picture

This would explain the Bloomburg TV interview of Maarten-Jan Bakkum, an emerging markets strategist at ING and I believe Deirdre Bolton of Bloomberg TV.

When asked by female talking head if China would have a hard landing, he ING talking head said no and that China was to smart.

That's all you need to know... ING and Bloomberg talking heads think China is to smart.  Econ and Finance 101 all rolled into one ladies and gents.  No worries here.

Just repeat to yourself the people running China are too smart.

Prepare to embrace the suck as they say.

Thu, 01/19/2012 - 21:55 | Link to Comment Silver Bug
Silver Bug's picture

Look out hyperinflation! Here comes China!

 

Pandora Style Beads

Tue, 01/10/2012 - 01:49 | Link to Comment lemonobrien
lemonobrien's picture

gold

Tue, 01/10/2012 - 01:44 | Link to Comment Hephasteus
Hephasteus's picture

As long as they only recreate the entirely fake shell companies shouldn't take too much work.

Tue, 01/10/2012 - 01:45 | Link to Comment Dorky
Dorky's picture

The global financial crisis has reached such a rotten state that every major government in the world is doing all its best to fabricate data and manipulate the stock market as much as possible.

This gives me the impression that everything is so bad that those at the top is extremely fearful that another collapse would wipe out almost everything. If the next collapse is not going to be severe, they would not even bother to persistently manipulate the data and the market. The fact that they persist in their manipulation means the next collapse has to be massive. And they are desperately doing all they can, including commiting fraud, to support the market.

Will the status quo wins at the end of the day? Or will the market prevail once again?

Tue, 01/10/2012 - 07:13 | Link to Comment Global Hunter
Global Hunter's picture

great post, nobody wants to be in control of the first major economy/country to collapse but they know its coming.

Tue, 01/10/2012 - 11:22 | Link to Comment xcehn
xcehn's picture

Agree with GH that this comment rocks.  While those schizoids at the top are increasingly terrified that collapse is inevitable, they simultaneously believe the situation is manageable (delusion).  The MSM is instructed to feed that message to the digest/obey matter (sheeple).

Tue, 01/10/2012 - 01:46 | Link to Comment Poor Grogman
Poor Grogman's picture

Has The Squid found it's largest client yet????

Tue, 01/10/2012 - 01:56 | Link to Comment poor fella
poor fella's picture

Yep, sure it will come out eventually.

And remember, "When Jim O'Neill walks through turn-style sideways, he going to Bangkok"

Tue, 01/10/2012 - 01:47 | Link to Comment RobotTrader
RobotTrader's picture

Looks like the Shangai and Shenzen indexes finally found an intermediate low.

 

Let's see how high they can push it by squeezing the shorts.

Tue, 01/10/2012 - 01:52 | Link to Comment Poor Grogman
Poor Grogman's picture

Shorts don't get squeezed these days they just suffocate from being covered with tons and tons of Benny bux.

Tue, 01/10/2012 - 02:14 | Link to Comment chump666
chump666's picture

like ZH hedge says, good for like a week.  I'd say less 2days.  But China still gets another dose of inflation.  Companies will still flip out over there and buy up massive USD forwards.  HK has been doing it even with their index meltups.

False break out.  Don't even think US stocks will make much of it...and Europe they are done and dusted.

Maybe a new top.  We short on that.

 

Tue, 01/10/2012 - 02:44 | Link to Comment Tsunami Wave
Tsunami Wave's picture

It seems all I ever do is read what your wrote on whichever page I come across on here, and then proceed to junk you.

Tue, 01/10/2012 - 06:12 | Link to Comment TGR
TGR's picture

Bit difficult squeezing shorts that don't exist, given you can't short equities on the Shanghai or Shenzen exchanges.

Tue, 01/10/2012 - 08:24 | Link to Comment jcaz
jcaz's picture

Quiet- Blutarsky is on a roll.......

Tue, 01/10/2012 - 01:51 | Link to Comment Dorky
Dorky's picture

The bankers and politicians say "I have a dream, and that is to bankrupt my country with massive debt and inflation."

"I am not going to do the right thing. Heck no, I am going to do what is extremely wrong."

Shit! Even a kid on drug can make all those stupid public policy that they are making.

Tue, 01/10/2012 - 01:52 | Link to Comment you enjoy myself
you enjoy myself's picture

and how is this different from ZIRP in perpetuity, when inflation sans housing is maybe 9%?  oh sure, Ben won't actually hold a gun to your head - he'll just force you to watch youself bleed out.   

Tue, 01/10/2012 - 01:54 | Link to Comment Ecoman11
Ecoman11's picture

Tyler: Want Asian news? Get Asian media sources, not BB. They take many releases out of context and hype it up for Americans. This all part of discouraging investors away from Asian markets.

Tue, 01/10/2012 - 02:04 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

"Man who push on chop suey noodle to get wonton attention end up with egg drop soup on face".

Neoconfucius

 

Tue, 01/10/2012 - 02:01 | Link to Comment non_anon
non_anon's picture

confucious say no more bubble equals trouble

Tue, 01/10/2012 - 02:04 | Link to Comment Hephasteus
Hephasteus's picture

http://visualwhore.files.wordpress.com/2010/03/bubble-squid.jpg

Once you let bubble squid sex you, you never satisfied again by anything but more bubble squid.

Tue, 01/10/2012 - 02:09 | Link to Comment slaughterer
slaughterer's picture

China H-Shares likely to close 3% up, pushing Western markets to gap up above critical resistance.  

Tue, 01/10/2012 - 02:10 | Link to Comment jimmyjames
jimmyjames's picture

China might force investors money into the market at gun point-but over here it's accomplished with a different sort of blood chilling method-

******************

"It appears that the Treasury isn’t going to guarantee money markets after December 18th and only funds that were in money markets on September 19th.

I think it's pretty clear that they’re trying to drive money back into the markets. It’s a dangerous and desperate move."

The U.S. Treasury Temporary Guarantee Program (the "Guarantee Program") provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008. Any increase in shares in the account after the close of business on September 19, 2008, will not be guaranteed.

http://globaleconomicanalysis.blogspot.com/2008/11/sideline-cash-theory-...

Tue, 01/10/2012 - 02:29 | Link to Comment jarboejl
jarboejl's picture

This could raise the stock market and it most likely will, but it could make people withdrawl those funds as cash, taking their ball and going home.  The latter would be healtier for the market, but let's not bet on it.

Tue, 01/10/2012 - 02:18 | Link to Comment bob_dabolina
bob_dabolina's picture

U.S based muni bonds are thee short position to be in right now. 

Can I post a chart? Will Tyler let me post a chart? I just need one to show this glaringly obvious asset dosconnect and how it ties into this post. 

Tue, 01/10/2012 - 03:47 | Link to Comment Manthong
Manthong's picture

You could post it on photobucket or tinypics and then copy the .jpg link to here..

I'd like to see your chart.

Tue, 01/10/2012 - 02:20 | Link to Comment jarboejl
jarboejl's picture

Geezus Fucking Christ

Tue, 01/10/2012 - 02:30 | Link to Comment Caviar Emptor
Caviar Emptor's picture

The creeping bubble: Just when y'all thought it was safe to get back in the water, thinking that the bubble had already burst 4 years ago and is "stabilizing" (love that word!) you might get your legs bitten off one day because of....The Creeping Bubble. Just under the radar. 

Today we got several glimpses of new bubbles in the making: consumer credit up while incomes and net worth still are in decline, US stocks drifting higher on terrible news out of Alcoa (lead off batter for the Dow and a whiff of what's to come in declining earnings) and horrific Europe banking system news, and now China following suit and reflating their stock bubble. 

Add to that buoyant commodities (especially oil) which drift higher in the face of demand destruction and create sub-bubbles in dependent asset values. And the mega bubble in shadow banking paper which has exploded since 09, the junk bond bubble, and even the Treasuries bubble

A credit bubble, a stock bubble, a commodities bubble, an agricultural land bubble, a junk bond bubble, we already know about several precarious currency bubbles.....all resting on a banking system with its own mega-bubble in shadow banking which in turn rests on the support of broke sovereigns in crisis. lol. Nothing to worry about

Tue, 01/10/2012 - 04:00 | Link to Comment Judge Arrow
Judge Arrow's picture

With all these bubbles, where's mine?

Tue, 01/10/2012 - 07:49 | Link to Comment falak pema
falak pema's picture

the only bubble worth bubbling about comes from chardonnay grape.

Tue, 01/10/2012 - 06:12 | Link to Comment StychoKiller
Tue, 01/10/2012 - 10:32 | Link to Comment IrritableBowels
IrritableBowels's picture

You forgot the worldwide Gold and Silver bubbles.

SARC

Tue, 01/10/2012 - 02:24 | Link to Comment BlackholeDivestment
BlackholeDivestment's picture

After reading this article on the Chinese plan, well, ...it's all about the tea. See video for confirmation.

http://www.youtube.com/watch?v=phIIcJSm4Zs 

This show of ''force'' must be do to the residual affect of the British hopium war huh? Lol

Tue, 01/10/2012 - 02:30 | Link to Comment LookingWithAmazement
LookingWithAmazement's picture

No hard landing in China - told you sooooooo. Boring world we live in.

Tue, 01/10/2012 - 02:36 | Link to Comment Caviar Emptor
Caviar Emptor's picture

It's year of the dragon this month. didn't ya know?

Tue, 01/10/2012 - 02:33 | Link to Comment Dorky
Dorky's picture

Civil servants (i.e. politicians) should be prohibited from investing or trading in the stock market.

It is exactly because of the politicians' participation with their dumb money in the stock market that they continue to intervene in inflating the market to save their own ass. It was never about being re-elected. It's about they putting their entire life's savings into the market and is now panicking to salvage their savings from possible collapse with whatever intervention necessary even if it means having to go for hyperinflation.

Tue, 01/10/2012 - 04:37 | Link to Comment snowbaall
snowbaall's picture

China is gonna have some serious problems with inflation.

Especially if the Bernank goes for QE3--which I think he will.

The good news?  Chinese girls still have sexy asses.

What's the point of building more shopping malls and condos if nobody has money?

I just don't understand.

Well, I do.  It's called command and control theft.

Tue, 01/10/2012 - 02:51 | Link to Comment maxw3st
maxw3st's picture

GS in a totalitarian system. "hilarious attempt at reponzification:" Gotta love it!

Tue, 01/10/2012 - 03:01 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

"coffin in the nail/nail in the coffin" no big deal.

But China pushing their populace into a black hole investment, now that's a shocker.

Not long ago they told their minions to buy gold, which I thought was pretty good advice, but now

promoting a lost cause market for a few days of alpha, Oh God, we must be entering the long,

dark winter that we all knew was approaching but few have totally prepared for. Time to dig in

and buy some freeze dried food, stock up on ammo, and board up the windows, the s*#t is about

to hit the fan.

Tue, 01/10/2012 - 03:06 | Link to Comment Questan1913
Questan1913's picture

We do it differently here in the US.  It sounds like the Chinese government is going to brutally shove people into the stock market whereas in the genteel US interest rates on savings are allowed to descend to essentially 0 in a passive act of benign neglect.  That is the difference between the civilised nations and brutal totalitarian states.  And if our seniors starve we will stand with them through our food stamp program using JPM vouchers. 

Tue, 01/10/2012 - 03:25 | Link to Comment aleph0
aleph0's picture

Damn , I was relying on that  US/China  Role change    :  Communism/Capitalism 
... to drive money into Gold. Seems they've both gone Ponzi now.

 

Tue, 01/10/2012 - 03:54 | Link to Comment Judge Arrow
Judge Arrow's picture

Hey come here, need to get this oyster in this here parking meter.

Tue, 01/10/2012 - 03:56 | Link to Comment Judge Arrow
Judge Arrow's picture

You see in capitalism, man exploits man. On our planet, it is the other way around.

Tue, 01/10/2012 - 09:49 | Link to Comment YHC-FTSE
YHC-FTSE's picture

+1

Awesome palindrome. I might steal that one sometime.

Tue, 01/10/2012 - 04:15 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

And that is the last ditch effort one does when one has no choice but to push "long-term investors" into the last giant ponzi.

The question rolling around in my head: Are they printing currency to pump stocks?

THAT would make it a ponzi in my mind.

Population buying stocks?  No printed currency.

Pension funds buying stocks?  No printed currency.

Bubble perhaps.   Ponzi no.

And they have something we don't have, a huge trade surplus, which would make any sort of bubble they inflate far more sustainable than any bubble we inflate.

And it might be a neat (if sly) way to draw in boatloads more dollars ...and Euros ...and Yen ...and whatever.   Guaranteed rising market coming right up!

Might that have some effect on ... oh ... say ... our Treasury market ...and stock market ...and muni market  ...and whatever market?

Anyway, last I checked we're the ones printing currency to pump stocks ...or were.

I don't see how anyone can match or beat our ponzi mindset. 

Pot - kettle?

Tue, 01/10/2012 - 04:34 | Link to Comment Scalaris
Scalaris's picture

 

Caught that gem from Bloomberg as well, although it didn't do much to disconcert me as the level of daily absurdity coming out of any financial system mouthpiece has rendered me insentient.

It seems that the inflation of bubbles is essential in order to keep other bubbles from being deflated (violently), be it in centrally planned, crony or "free" "capitalism" markets.

Some links for anyone interested

  1. China Debts Dwarf Official Data With Too-Big-to-Finish Alarm
  2. Chinese provincial debt reaching crisis point
  3. China will go slow for longer, but a hard landing is unlikely
  4. Chinese Real Estate Market Slows
  5. Why The Wheels Are Falling Off China's Boom
  6. China's conundrum of liquidity, inflation and structural deficiencies
  7. China manufacturing, investment hurt by global crises
  8. China's Growth
  9. Will China Break?
  10. Jim Rogers vs Marc Faber: Faber Cautious On China; Rogers Bullish On All Commodities
  11. China's factories feel EU slump
  12. China PMI: A Landing, But Soft Or Hard?
Tue, 01/10/2012 - 04:41 | Link to Comment Troy Ounce
Troy Ounce's picture

 

 

China hell-bent on pressing reality into Keynesian models. Looks like they are as stupid as our Central Bankers.

Tue, 01/10/2012 - 05:22 | Link to Comment IQ 101
IQ 101's picture

" Is a flee market,Aric Baldwin ! don't you know how fucking busy I am ?"

Tue, 01/10/2012 - 05:23 | Link to Comment Poor Grogman
Poor Grogman's picture

China got told that promoting gold was a bad idea.

Hell ... look what happened to those other silly gold hoarding countries just recently, you certainly wouldnt want to end up on that list would you?

Better to just play along and do what we do, everything will be just fine.....

In a collectivist utopia you really should play by the rules... And believe me we do have a rule for everything.

All those pesky gold buyers were starting to be a real headache.

Tue, 01/10/2012 - 05:29 | Link to Comment Dorky
Dorky's picture

At the end of the day, regardless of whatever crisis, there will be "NO PROBLEM".

Whatever the fucking shit that is going to happen, the government is going to "save" us all by going into the mother of all fucking crisis - HYPERINFLATION.

Hyperinflation is the new normal, where it is the Crisis to solve all crisis.

Regardless of what those idiots said about gold being an ultimate bubble (so be it, then), gold will be our ultimate savior when our country and economy burn all the way to the ground because of all those motherfucker bankers and politicians.

Come on, do we still have to give a shit to what the government says or do? Even the horses can be politicians. Just go default on our debt to be debt-free and then go buy as much gold as possible and go to the bankers and politicians and say "We are no longer accepting your shitty paper. We are now using gold. We don't give a fuck about your stupid hyperinflation anymore. You can go and burn yourself to the ground on your own."

Tue, 01/10/2012 - 06:03 | Link to Comment The Heart
The Heart's picture

Ahoy brothers and sisters. Messages from Chinese locals saying they are busily preparing to go to war with America. Selling plowshares and buying swords for war knowing it is better to die that way than as a slave in a falling crashing radioactive world there. All the Americans have to do is throw the first spark and with the freaks and lunatics up there running things, it is just a matter of time. And, it must happen before the election of Ron Paul as President.

What is even more frightening is this new report about the melting down going on in the spent fuel pool everyone has feared doing exactly what it is doing at this moment. There is a National Emergency going on in Japan right now and it is being covered up and unreported while America focuses on war and politics as usual. We have seen many rises in the radiation counts all over the world. Read this report from Enenews.com:

http://enenews.com/forum-post-radiation-monitoring-data-dec-17-2011-pres...

 

RED ALERT!!! ((Cross thread multi-posting))

You hit it on the head here everyone.

James2, you have been alerted all this time for good reason brother. Follow your heart.

Nuckelchen, you too have done exceptional work keeping our eyes focused on this.

We have all been feeling it.

Just in: Nightmare in Japan!!!

Earthquake very recently on the first of January has caused the tank on the number four spent fuel pool to crack and the rods to bounce around causing a meltdown. There is no water in the cooling pool according to reports coming in.

Fukushima province is being evacuated and this is why we are seeing so many people and vehicles headed up there. It is a NATIONAL EMERGENCY NOW there and no one is talking about it except for here on EneNews.

THIS IS A REAL-TIME REPORT!!!

People in Tokyo MUST get out before the stampede!

THIS IS ONLY GOING TO GET WORSE IN THE NEXT WEEKS OR MONTHS. THIS MEANS THAT ANY TIME NOW IT COULD GO INTO CRAZY MODE AND DO WHAT WE ALL HAVE FEARED.

We all have been feeling this and pointing something out for weeks and now we are being confirmed that there is an ONGOING EVENT HAPPENING NOW!!! Number four spent fuel pool is in meltdown and it is most likely going to crash and burn unless Mighty Mouse shows up real quick to stop it.

We must all know now that the highs and lows we have been monitoring and measuring are REAL and VERY DANGEROUS and there is a lot more going up into the atmosphere RIGHT NOW. We are talking plutonium, the real deal!!!

Heads up everyone who has a counter. REPORT YOUR READINGS ON THE PERMANENT RADIATION REPORTING THREAD MORE OFTEN PLEASE. Two times a day will allow us to track patterns in the jet stream. This is a community event. Get jiggity people!! Heads up to the skies to watch the jet stream above you and please also report your data on the PRRT because we also now find out that there is plutonium going up there and worse. What goes up, must come down. Watch closely the winds from japan NOW!

Cont.

Here is Micheal's story about his trip back east. What is alarming is his report about the amounts of radiation up there in the atmosphere. Imagine all the people getting fried that are flying every day. This is beyond science fiction horror. Look at the picture of the counter he is holding in this report below. That is 12,380 counts in a Ten Minute Total Count to get 1,238 CPM! (radioactive particles counted per minute)!!!!!!

http://www.enviroreporter.com/2012/01/seasons-readings/

Hard to believe this is only now coming into the light. We must all be ultra-ultra alert now. All hands on deck!! No time for squabbles or ANY negative energy. We must watch this, and watch it close. The chinga is about to hit the fan and then, are you prepared to shelter in place?

http://www.youtube.com/watch?v=pWqCGYx9SGs

Tue, 01/10/2012 - 06:25 | Link to Comment Colonial Intent
Colonial Intent's picture

It is the fault of every American citizen.

They were happy with the system while it gave them the better quality of life while killing the people they robbed and stole from, now they are losing the advantage USA is starting to worry and the only way to slow your decline is to use the threat of war to keep the rest of the world doing what you tell them.

Pesonally i really hope the USA sorts its shit out and asap, I am not Happy about sending my kids to america as part of some EU-UN stabilisation force to save you from starvation and civil war.

 

BTW, us Europeans are not preaching, we already made all the mistakes you are about to make and they cost us our best generations.

Ask the russians what war on your own land looks like, in WW2 russia fought over 80% of the german army and routed it back across europe, and it cost them was 50 million dead russians.

We lost under a million here in blighty.

Tue, 01/10/2012 - 06:39 | Link to Comment old naughty
old naughty's picture

All those bank stocks unloaded by BAC had to be taken up by someone...

But why so high profile?

Ah, paper gain.

Bullish for SSE/banking. Will it sustain?

Tue, 01/10/2012 - 06:45 | Link to Comment Quinvarius
Quinvarius's picture

So what were the pension funds buying before?

Tue, 01/10/2012 - 09:04 | Link to Comment falak pema
falak pema's picture

SEAN DARBY: 'The Consensus Has Underestimated How Competitive The US Economy Has Become'

Read more: http://www.businessinsider.com/sean-darby-jefferies-equity-strategist-sp-500-2012-1#ixzz1j3LlMpHZ

RobotTrader is not the only guy in town who sees 2012 as boom times for blue chip WS/USA. The bulls seem on the run as BI also pages this : 

 

THE AGE OF CONSUMER DELEVERAGING IS OVER

http://www.businessinsider.com/the-age-of-consumer-deleveraging-is-over-...

At least this MSM financial blog is gung-ho about 2012...the consumer returns, and business booms in good ole USA! 

So China is not the only one who is bullish about the "year of the dragon"...

ZH bears vs BI bulls, we are in for a black and white scenario for 2012. One thing everybody agrees on is that EUrozone will burn in 2012. There has to be a fall guy in every scenario, otherwise Dashiel Hammett would turn over in his grave!

Shades of Maltese Falcon!

PS : Not to give the impression that I read BI selectively, here is a Bearish article in BI too :

Apologise to those who have already read it.

Bob Janjuah: The Rally Just Has A Few Days Left, Greece Will Hard Default, And The Worst In Europe Is Yet To Come. 

Read more: http://www.businessinsider.com/bob-janjuah-the-rally-just-has-a-few-days-left-and-the-worst-in-europe-is-yet-to-come-2012-1#ixzz1j3mIyzjB

Tue, 01/10/2012 - 08:16 | Link to Comment blueridgeviews
blueridgeviews's picture

"If you want to know what the US is doing behind closed doors just look to China. The US has plenty of time to sit down with the Chinese and explain to them how "we" run our financial system.

Tue, 01/10/2012 - 08:23 | Link to Comment vegas
vegas's picture

What could possibly go wrong? I'm sure B. Hussein Soetero is sitting up and taking notes on this for his czars.

 

http://vegasxau.blogspot.com

Tue, 01/10/2012 - 08:53 | Link to Comment Patrick in Michigan
Patrick in Michigan's picture

Nice article, but where's the link to the original story?

Duh!

 

 

 

 

Tue, 01/10/2012 - 09:08 | Link to Comment dcb
dcb's picture

sorry, but I do not see how this is greatly different from the strategy of the great bernank.

Tue, 01/10/2012 - 09:22 | Link to Comment Life of Illusion
Life of Illusion's picture

 

it appears America has been exporting financial innovation (such as high yield corporate bonds and municipal debt) double time to Shanghai.

Here's when that started.

http://en.wikipedia.org/wiki/Qualified_Foreign_Institutional_Investor

 

 

 

Tue, 01/10/2012 - 09:25 | Link to Comment Downtoolong
Downtoolong's picture

China is now pushing habitual gamblers, which over there is another name for "investors"

Glad someone finally brought this to the forefront. I’ve suspected all along that most Chinese investors behave very differently in the markets than Western investors do. Their penchant for gambling and speculating combined with greater volume and size participation in the markets has probably added volatility and risk to it for us all. I’ve read elsewhere that individual investors in Taiwan often enter and exit a single position in the market as much as 50 times a day. For tangential evidence, just spend a few minutes sometime watching the bizarre behavior of an addicted Chinese gambler at a roulette table. I’ve never seen a Western gambler stack $1 chips 30-50 high (as if to say that’s better than three $10 or two $25 chips) on fifteen different numbers on a single spin of the wheel.

Tue, 01/10/2012 - 09:41 | Link to Comment riphowardkatz
riphowardkatz's picture

they are like a bad driver on ice, over steer one way then over steer the other way, usually ends in 180 then the ditch.

Tue, 01/10/2012 - 09:53 | Link to Comment Isis
Isis's picture

Russia, China, Japan, and Iran are going to trade oil in there own monies, Iran has been but this time these other countries are involved. Obama is getting ready to unleash the dogs of war on Iran, plus there is a vedio on you tube called what if they'er lying lying to you about Ron Paul. There dropping the dollar as we speak.

Tue, 01/10/2012 - 09:55 | Link to Comment tabasco71
tabasco71's picture

Nothing noone on here didn't already know, but a couple of interesting figures mentioned...

http://www.ft.com/intl/cms/s/0/6b521d4e-2196-11e1-a1d8-00144feabdc0.html

Tue, 01/10/2012 - 09:55 | Link to Comment Patrick in Michigan
Tue, 01/10/2012 - 14:38 | Link to Comment flyme
flyme's picture

Concepts of 'blight, flight, and strife' are only revelant at the bitter end in sychronous homogeneous societies. Until then, they are only momentary blips serving their purpose to separate the herds into the right working enclaves until they are no longer needed. Fringe ambiguity preserves and protects the monolith. While seeminly discontinuous actions blot out this recognition, until eventually all backhoed spots are filled, and symmetry then become obivious.

 

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