If the Chinese start selling, the stock market will fall.

[Neubarth]

I expect the Chinese to start selling soon. Hopefully it will not be in one mass movement.

 

[editec]

I suspect if the Chinese want to kill the goose that has laid their golden egg, they could crash this government (and this fibrilating economy, too) by dumping a trillion dollars worth of T-Bills on the world market.

They'd be nuts to do so, of course, because as our economy goes, so too goes the rest of the economies that they sell into.

 

[william the wie]

The Chinese have little choice in the matter. Their economy is tanking, their labor force is shrinking due to the one child rule and the Yuan is becoming less controllable.

 

[Toro]

I expect the Chinese to start selling soon.

Why?

 

[sparky]

well i understand China is often guilty of monetary manipulation>

Senators Calling Commerce Out on Currency Manipulation | Economy In Crisis

so would it be reasonable to assume thier move to SDR's via the IMF would gain them anything in revaluation of said Tbills without selling off anything? Perhaps even as a hedge against what they (again assuming) see as an insolvent nation....?

 

[Big Black Dog]

The Chinese have come a long way from building our railroads to owning most of the US from us being stupid enough to keep borrowing money from them. We'll be building their railroads before much longer. Pass the rice.

 

[Neubarth]

The Chinese have come a long way from building our railroads to owning most of the US from us being stupid enough to keep borrowing money from them. We'll be building their railroads before much longer. Pass the rice.

The average American worker would not meet their standards for productivity.

 

[Zander]

selling what?

 

[sparky]

our debt

 

[editec]

The Chinese have come a long way from building our railroads to owning most of the US from us being stupid enough to keep borrowing money from them. We'll be building their railroads before much longer. Pass the rice.

We're not smart enough to suit then, I expect.

Seriously, had it not been for the Chinese laborers figuring out how to do it, we might never have built those rails over the Rockies.

If you're dubious about that claim, I totally understand.

I was stunned when I first read about the fact that the Chinese coolies understood how to build on the side of mountains when all our engineers had failed in the task, too.

 

[JW Frogen]

The US can always play financial nuclear tag.

We owe you so much you really can not afford to loose it.

 

[editec]

The US can always play financial nuclear tag.

We owe you so much you really can not afford to loose it.

Great!

We can collectively become a suicide bombing nation.

So only instead of killing a handful of innocent people on a bus, we can kill every man woman and child on earth.

Very comforting thought, that.

 

[Neubarth]

The US can always play financial nuclear tag.

We owe you so much you really can not afford to loose it.

Great!

We can collectively become a suicide bombing nation.

So only instead of killing a handful of innocent people on a bus, we can kill every man woman and child on earth.

Very comforting thought, that.

Seeing how high the stock market has risen without accompanying earnings, any threat of major war would tank the market.

 

[Neubarth]

selling what?

There are hundreds of internatioal mutual funds that invest wholly in the United States, tracking the DJIA or Tech or .....

The Chinese investors have hundreds of billions in American company stocks. I have seen wide ranging estimates but in all cases if they sold in quick measure we could see the stock market fall by fifty percent easy.

 

[editec]

selling what?

There are hundreds of internatioal mutual funds that invest wholly in the United States, tracking the DJIA or Tech or .....

The Chinese investors have hundreds of billions in American company stocks. I have seen wide ranging estimates but in all cases if they sold in quick measure we could see the stock market fall by fifty percent easy.

Why would individual owners of stocks all do that at once?

Uneless, of course, there's a panic, but then everybody (Chinese stockholders included) is rushing for the exit.

 

[uscitizen]

The Chinese investors heard that Rand Paul is likely to be elected to the senate.

 

[Neubarth]

selling what?

There are hundreds of internatioal mutual funds that invest wholly in the United States, tracking the DJIA or Tech or .....

The Chinese investors have hundreds of billions in American company stocks. I have seen wide ranging estimates but in all cases if they sold in quick measure we could see the stock market fall by fifty percent easy.

Why would individual owners of stocks all do that at once?

Uneless, of course, there's a panic, but then everybody (Chinese stockholders included) is rushing for the exit.

As we know, panics can never be predicted.. The Chinese can panic themselves and cause a market fall that could be very dangerous. They have been selling since Noon EST yesterday. That was when the first wave of sell orders came in. I expect that there will be a rush to offload by Friday, so we could see some pretty interesting sales data over the next two trading days. We might see momentum build if UI claims are UP tomorrow.

 

[uscitizen]

Sales data has been impacted in the positive direction recently by income tax refunds and this will continue for maybe 2 more months.