What will the effect of the China crash be on the US?

Insiders sending an ominous market signal
"Talk about crosscurrents," said Jim Paulsen, chief market strategist at Wells Capital Management. "The insider selling is a real negative signal for the market typically."

One of the primary reasons it hasn't pulled the market down is a push from companies buying back their own shares. Corporate buying, including cash takeovers and new buybacks, hit $96.2 billion in November. Since third-quarter earnings began in October, buybacks have averaged $3.9 billion a day, which TrimTabs said is the second-highest pace since the bull market began in March 2009.

Buybacks have been an efficient way to push market growth as the Federal Reserve keeps borrowing costs low and retail investors remain reluctant market participants. Zero-interest money market funds continue to hold huge sums, with the current $2.67 trillion total 2.4 percent higher than a year ago, according to Investment Company Institute data.
You can fool a liberal all the time, you can fool a moderate some of the time and you can fool a conservative once. We conservatives have seen how the ZIRP has screwed up the economy, yet liberals continue to believe that it is recovering. I guess when you are a goosestepping, koolaid drinking, low information, mindnumbed useful idiot, you believe what ever comes out of the Rainbow House. Yes, the RICH are definitely RICHER(with the 1/2 white president in office almost 7 years) and the most in poverty ever in the history of the U.S. of A. Elections have consequences, and you poor tards who voted for B.O. deserve all the misery he has FORCED upon you.
 
Huh? I didn't mention anything about helping China, but a "hope" for a soft landing. The US isn't buying yuan, as far as I know, but the Chinese have let US citizens buy and hold yuan for several years now. I doubt the US would get involved unless it becomes political. An example is what rich US citizens did to hurt Russia by manipulating oil prices when they invaded Ukraine.

That said, a slower growth for China would be good for the US. Then the Chinese would not be so eager to lend more money to the US and the USG would be "forced" to cut back.
 

Forum List

Back
Top