Greece has sucked the oxygen out of the financial news at owing $270 billion for this country of 11 million people and now wants to stick it to those who became the “other peoples’ money”. PR also made news when its governor said that it could not pay back its $72 billion debt and now wants US laws changed so as to be able to go bankrupt (and also stick it to those who became the “other peoples’ money”.
And then there is China – no, not quite the debt that is the topic. It is their absolute meltdown of their stock exchanges over the last 3 weeks or so: $3.2 Trillion of value just vanished. We Groksters had a number of emails on the techie news of the day (United Air Lines, Wall St Journal, NY Stock Exchange) but also mentioned China. My 2 cents:
China has been a ticking time bomb for a while, financially. Folks for a few years, have thought that Commies have been fudging their economic numbers and their exchanges have lost $3.2 Trillion over the last month or so. Now, the Chinese govt can’t stem the flood of what Instapundit calls a “preference cascade” – investors finally got sick of putting up with the nonsense and started pulling out as some of the real data’s results starting showing up.
1. The government is essentially buying stock:2. China is even buying small stocks:3. New stimulus:4. More government spending:5. Over half of China’s stocks have stopped trading:6. Big shareholders can’t sell for 6 months:7. No more IPOs (for now):8. Central Bank slashed rates:9. Chinese investors can use their homes as collateral:10. Devaluing the yuan:
