China about to pop?
21 June 2013, 07:11 AM
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China about to pop?
Is it?
Chinese housing bubble about to crash?
Won't be good news for the west - shares dropping and gold plummeting - can this push us deeper into recession?
On the plus side, oil also seems to be dropping in price.
Chinese housing bubble about to crash?
Won't be good news for the west - shares dropping and gold plummeting - can this push us deeper into recession?
On the plus side, oil also seems to be dropping in price.
21 June 2013, 10:20 AM
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21 June 2013, 12:27 PM
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They build a British town that no one lives in.
At some point, either they pay workers more to afford these properties, which in turn make China not such a cheap place for manufacturing, or you stop building.
Either way, it looks like they could go pop. They seam to have gone through their industrial revolution in double quick time.
21 June 2013, 07:14 PM
#10
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Bernanke announced yesterday that QE may be at an end. The stock market has been fueled by this cheap money for some time so when he hinted the taps might be switched off the markets all dipped.
The potential end to QE also means inflationary risks become smaller so gold fell considerably.
The thing is central banks have been printing money (in simple terms) and this has prevented a depression. The question is can they turn the taps off slowly to engineer a soft landing.......
21 June 2013, 08:32 PM
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They've kept building and building properties, yet only a small minority of the Chinese people can afford such properties. So you have loads of empty properties that no one can afford. Not the way to build an economy.
They build a British town that no one lives in.
At some point, either they pay workers more to afford these properties, which in turn make China not such a cheap place for manufacturing, or you stop building.
Either way, it looks like they could go pop. They seam to have gone through their industrial revolution in double quick time.
They build a British town that no one lives in.
At some point, either they pay workers more to afford these properties, which in turn make China not such a cheap place for manufacturing, or you stop building.
Either way, it looks like they could go pop. They seam to have gone through their industrial revolution in double quick time.
I take it you watched the same documentary I did then, China have been building whole city's that no average Chineese worker can afford to buy.
21 June 2013, 08:58 PM
#13
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Bernanke announced yesterday that QE may be at an end. The stock market has been fueled by this cheap money for some time so when he hinted the taps might be switched off the markets all dipped.
The potential end to QE also means inflationary risks become smaller so gold fell considerably.
The thing is central banks have been printing money (in simple terms) and this has prevented a depression. The question is can they turn the taps off slowly to engineer a soft landing.......
The potential end to QE also means inflationary risks become smaller so gold fell considerably.
The thing is central banks have been printing money (in simple terms) and this has prevented a depression. The question is can they turn the taps off slowly to engineer a soft landing.......
And all that cheap cheap money, has resulted in a massive flow of wealth to the wealthy, no wonder they react badly when the drug of cheap money is coming to an end
Expect cold turkey
21 June 2013, 10:12 PM
#14
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Diversification is the name of the game and the lifeline of an investor.
However sometimes I feel the global economy is so fooked and artificially hyped that all asset classes may tank at the same time. In that scenario I'll be fooked, but then everybody else will be as well
Last edited by Dingdongler; 21 June 2013 at 10:13 PM.
23 June 2013, 08:49 PM
#17
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Gold will resume its rise. Perhaps it was overpriced for a while though.
It's only falling because there is talk of the federal reserve 'tightening' monetary policy. They won't do that, because they can't. They are in a catch-22 situation. As soon as they even start making noises about tightening, bond yields start to rise, which puts the US in a worse situation in terms of its borrowing. But if they continue with QE, the economy grows structurally less sound and more reliant on that borrowing.
It's only falling because there is talk of the federal reserve 'tightening' monetary policy. They won't do that, because they can't. They are in a catch-22 situation. As soon as they even start making noises about tightening, bond yields start to rise, which puts the US in a worse situation in terms of its borrowing. But if they continue with QE, the economy grows structurally less sound and more reliant on that borrowing.
Last edited by GlesgaKiss; 23 June 2013 at 08:51 PM.
23 June 2013, 09:55 PM
#18
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Gold will resume its rise. Perhaps it was overpriced for a while though.
It's only falling because there is talk of the federal reserve 'tightening' monetary policy. They won't do that, because they can't. They are in a catch-22 situation. As soon as they even start making noises about tightening, bond yields start to rise, which puts the US in a worse situation in terms of its borrowing. But if they continue with QE, the economy grows structurally less sound and more reliant on that borrowing.
It's only falling because there is talk of the federal reserve 'tightening' monetary policy. They won't do that, because they can't. They are in a catch-22 situation. As soon as they even start making noises about tightening, bond yields start to rise, which puts the US in a worse situation in terms of its borrowing. But if they continue with QE, the economy grows structurally less sound and more reliant on that borrowing.
I've read the current price of silver is less than it costs to mine and refine it. Doesn't make sense.
24 June 2013, 06:29 PM
#19
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I see they are already coming out of the woodwork to say the bond market is overreacting and play the whole thing down.
http://www.marketwatch.com/story/fed...me_latest_news
http://www.marketwatch.com/story/koc...ry_latest_news
http://www.marketwatch.com/story/fed...me_latest_news
http://www.marketwatch.com/story/koc...ry_latest_news
24 June 2013, 06:42 PM
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I've given up trying to read it, I'll leave it to the experts like Alloy.
We've had a big correction the last week or two and I can't say I haven't been affected, it's hard not to be especially if you have a pension which is riding the roulette wheel of the stock markets.
**** poor return on cash deposits look ok when the market falls like this. I'm diversified enough to see mediocre gains...and losses.
We've had a big correction the last week or two and I can't say I haven't been affected, it's hard not to be especially if you have a pension which is riding the roulette wheel of the stock markets.
**** poor return on cash deposits look ok when the market falls like this. I'm diversified enough to see mediocre gains...and losses.
24 June 2013, 07:08 PM
#21
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It's interesting how falls like this make you want to stop buying stocks, when really the opposite is probably the right thing to do, so that you have a long-term average of some kind. My portfolio is down around 15% just now. My accumulating pay is staying in a savings account for the time being. Just don't have as much time as I used to to find stocks to buy. The last two companies I bought shares in are sensitive to fluctuations in the gold market, so you can imagine how they've gone since I bought them. Probably the worse performing stocks I've ever bought, but as a percentage of my portfolio not such a big deal. Just going to sit it out with them.
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