Publius1787
Gold Member
- Jan 11, 2011
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Do we have a Stock Market Bubble About to Pop??
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Sell in May and Go Away!
China just blew up the worlds biggest property bubble. Chinese Government is imposing a new 20 percent tax on profits from housing sales of second home. Chinese people are rapidly selling homes ahead of the tax. Divorce filings shot up across China after rumors spread that one way to avoid the new 20 percent tax on profits from housing sales was to separate from a spouse, at least on paper.
NYT: In China, Checklist for a Home Seller: First, Get a Divorce
All the rush to sell second homes in China is crashing the housing market. This has crashed the commodities market globally. Government's can't print enough money to stop the deflationary spiral that is now taking hold. Commodities & Stocks are imploding.
Sell in May and Go Away!
China just blew up the worlds biggest property bubble. Chinese Government is imposing a new 20 percent tax on profits from housing sales of second home. Chinese people are rapidly selling homes ahead of the tax. Divorce filings shot up across China after rumors spread that one way to avoid the new 20 percent tax on profits from housing sales was to separate from a spouse, at least on paper.
NYT: In China, Checklist for a Home Seller: First, Get a Divorce
All the rush to sell second homes in China is crashing the housing market. This has crashed the commodities market globally. Government's can't print enough money to stop the deflationary spiral that is now taking hold. Commodities & Stocks are imploding.
Interesting, KissMy...thanks for posting this.
I haven't been paying much attention to the goings on in China, but I can certainly see how what's happening in China is going to effect the world's economy.
But I wonder where the Chinese are going to stash those profits they've made on RE?
they don't really have the same kind of equity market we have, and the average Chinese investor cannot get their cash out of China like we here in the West can invest in other nations.
Or am I missing something important about the state of affairs in China as it related to the "average" Chinese investor?
Real questions above, mate, I am seeking to tap into your base of knowledge here.
editec is right...identifying the bubble is obvious. Saying when it will pop is a whooooole other issue.
editec is right...identifying the bubble is obvious. Saying when it will pop is a whooooole other issue.
Wasn't that obvious to those in 2004 - 2007.
. Sell high, buy low my mantra.
Absolutely. Equally obvious that there was a bubble then as now, however just like then - Wall Street can maintain a farce for many months - even years as long as our government has no issue with propping it up with taxpayer money,
Take away the $85,000,000,000 a month the gubbmint is providing now - the market would collapse in a day.
Absolutely. Equally obvious that there was a bubble then as now, however just like then - Wall Street can maintain a farce for many months - even years as long as our government has no issue with propping it up with taxpayer money,
Take away the $85,000,000,000 a month the gubbmint is providing now - the market would collapse in a day.
Well I won't disagree that the financial community is rather clueless, but this is due to the mass optimism among the ranks. Most believe that the market wasn't going to crash, while others believed that the market could NEVER crash.
The Fed emphasized that it was ready to increase or decrease its efforts to spur growth and reduce unemployment as necessary, a more balanced position than it took earlier in the year, reflecting the reality that a strong winter has once again yielded to a disappointing spring.
It was the first time that the Fed had explicitly mentioned the possibility of doing more in a policy statement, although officials, including the Fed’s chairman, Ben S. Bernanke, have made the point repeatedly in public remarks.
Analysts disagreed about the central bank’s intent. Some saw it as a signal that the Fed’s next move could be an expansion of its stimulus...
It added, however, that federal spending cuts were “restraining economic growth,” an implicit critique of the rest of the government.
That language was stronger than the Fed had used in previous assessments of the economic impact of fiscal policy. Fed officials have repeatedly expressed frustration that fiscal policy is working at cross-purposes with their own monetary policy. The statement also noted that the pace of inflation had slackened, a potential sign of economic weakness.
(My edits)....He ALSO believed that for most small investors there WAS NO TRULY good way to invest in the market....
But most small investors have about as much control over their investment fate as dust in the wind has control over its fate.