Comments on: Live By the Bubble, Die By the Bubble http://www.chinahearsay.com/live-by-the-bubble-die-by-the-bubble/ China law, business and economics commentary Wed, 08 Feb 2012 20:24:36 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Stan http://www.chinahearsay.com/live-by-the-bubble-die-by-the-bubble/comment-page-1/#comment-75114 Stan Fri, 21 Aug 2009 07:25:21 +0000 http://www.chinahearsay.com/?p=3581#comment-75114 I should probably just stop writing about this issue, but all the stories over the past few weeks are either breathless enthusiasm or dire predictions of doom. The brokers, the banks, the media -- everyone is in the business of the big story. For those in the biz, if something is really bad or really good, then it's a reason to buy/sell (and for them to collect commissions). I wish we lived in a world where the NYSE moved for earnings reports, big changes in unemployment, and spikes in prices. Can't we move to a reality-based market? I should probably just stop writing about this issue, but all the stories over the past few weeks are either breathless enthusiasm or dire predictions of doom.

The brokers, the banks, the media — everyone is in the business of the big story. For those in the biz, if something is really bad or really good, then it’s a reason to buy/sell (and for them to collect commissions).

I wish we lived in a world where the NYSE moved for earnings reports, big changes in unemployment, and spikes in prices. Can’t we move to a reality-based market?

]]> By: Chris Devonshire-Ellis http://www.chinahearsay.com/live-by-the-bubble-die-by-the-bubble/comment-page-1/#comment-75113 Chris Devonshire-Ellis Fri, 21 Aug 2009 07:19:07 +0000 http://www.chinahearsay.com/?p=3581#comment-75113 I completely agree Stan. People like Jim Lowell at Forbes were way off base. Glad he's not my broker. My comments on China catching a cold were here if you'd like a gander: http://www.2point6billion.com/2009/08/14/asian-regional-figures-look-good-but-chinas-remains-suspect-1798.html I also wonder just how much of the Governments fiscal stimulus plan (some say as much as 20%) that was supposed to go into regional investment projects was redistributed to stock market speculation and property by government officals and what Beijing intends to do to punish them, if anything? Inject 4 trillion into the economy and of course GDP growth goes up. The really interesting question is what would China's GDP growth have been if they hadn't done that. The true rate I suspect is actually about 3 to 4%. I completely agree Stan. People like Jim Lowell at Forbes were way off base. Glad he’s not my broker. My comments on China catching a cold were here if you’d like a gander: http://www.2point6billion.com/2009/08/14/asian-regional-figures-look-good-but-chinas-remains-suspect-1798.html
I also wonder just how much of the Governments fiscal stimulus plan (some say as much as 20%) that was supposed to go into regional investment projects was redistributed to stock market speculation and property by government officals and what Beijing intends to do to punish them, if anything?

Inject 4 trillion into the economy and of course GDP growth goes up. The really interesting question is what would China’s GDP growth have been if they hadn’t done that. The true rate I suspect is actually about 3 to 4%.

]]>