July 2, 2015

Bits Bucket for July 2, 2015

Post off-topic ideas, links, and Craigslist finds here.

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Comment by frankie
2015-07-02 00:46:32

Eurozone finance ministers have ruled out any further talks on a fresh bailout for Greece until the country holds its referendum on Sunday.

Greeks will be asked to accept or reject proposals made by creditors last week, with Prime Minister Alexis Tsipras urging a “No” vote.

Finance Minister Yanis Varoufakis accused the creditors of blackmail.

But he pledged a deal would be reached soon after the vote and that current limits on bank withdrawals would ease.

Greek banks did not open this week after the European Central Bank froze their liquidity lifeline.

Withdrawals from cash machines are capped at just €60 (£43; $66) a day but some bank branches reopened on Wednesday to allow pensioners - many of whom do not use bank cards - a one-off weekly withdrawal of up to €120.

I think quite a few young Greeks will be singing this


Comment by Professor Bear
2015-07-02 05:00:15

“Finance Minister Yanis Varoufakis accused the creditors of blackmail.

But he pledged a deal would be reached soon after the vote and that current limits on bank withdrawals would ease.”

Could hubris stand in the way of a deal?

Comment by Puggs
2015-07-02 10:32:49

I think Varoufakis is confused as to how blackmail typically works. There really is no secret his country owes a TON of money.

Comment by Raymond K Hessel
2015-07-02 11:37:23

Which means the banks that lent it to him are as nervous as a six-year-old at the Neverland Ranch.

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Comment by taxpayers
2015-07-02 11:54:53

it’s ok you can marry them now

Comment by Califoh20
2015-07-02 12:16:35

less gov is good

Comment by Professor Bear
2015-07-02 23:46:55

The euro and Greece
Europe’s future in Greece’s hands
Whatever its outcome, the Greek crisis will change the EU for ever
Jul 4th 2015 | From the print edition

THE European Union has never seen the like of the past eight days in Greece: barred banks, capital controls, the first IMF default by a developed country, the collapse of a multi-billion-euro bail-out, plans for a referendum that may hasten Greece’s ejection from the single currency, and the beggary of the people. Were the stakes not so high, all those emergency summits and last-minute demands would count as farce.

Instead it is a tragedy, where an outcome that all sides say they do not want—Greece’s exit from the euro—seems increasingly likely. The chaos is evidence that leaving the euro would be disastrous for Greece, not least because modest gains from default and devaluation would be overwhelmed by political and economic instability. For the rest of Europe, too, “Grexit” has well-rehearsed risks, notably that of a failing state on the continent’s south-eastern flank. But as the drama has become more desperate, so Europeans seem less worried. They take comfort from the fact that Greece is uniquely dysfunctional. Game-playing and repeated miscalculation have poisoned the negotiations (see article). Without Greece, many now conclude, the euro zone might actually be more stable.

Sadly, that is wrong. Look beyond Greece, and the threat of further conflict within the euro is all but inevitable. Although Greece’s departure would prove the euro is not irrevocable, nobody would know what rule-breaking would lead to expulsion. Nor would it resolve the inevitable polarisation of debtor and creditor governments in bail-outs. If the single currency does not face up to the need for reform, then this crisis or the next will witness more Greeces, more blunders and more dismal weeks. In time, that will wreck the euro and the EU itself.

Comment by NJDude
2015-07-02 01:31:49

Finally, back from the trip to China and trying to get the jet-lag out of the system. Great to be posting as I have only done a couple of posts since 2012, but I’ve been enjoying Ben’s work since 2007.

I’ve been traveling to China since 1998 and met my future wife in 2005 while traveling in Ghaungzhou.

Visiting her relatives was the reason for this trip this time.

Please excuse any spelling typos as the jet-lag is kicking hard!

Now, a little of what I saw:

Wife’s hometown and where her Brother has a business selling air conditioners to residential and commercial interest.
Business is DOWN across the board. His warehouse sits 66% empty compared to just last couple of years.
His apartment tower used to have sales reps for other various housing projects…they are gone.
The apartment tower next to his that was under construction sits unfinished. “They ran out of money” he says.
Construction does continue on infrastructer (roads, bridges). Why won’t they rebuild that crappy airport?
Most skyscrapers do have work crews onsite although others are dark and quiet.
Retail: more shops seem closed but it is a close call. They can’t fill what they have but they are building more retail.
Son wanted to see the Panada’s and I haven’t been to this city in 9 years. Well, it grew up a bit.
Similar to Chongqing as some projects are dark and quite and others active. (depends on you bankster, I guess).
One thing is certain, there are more cars on the road than 9 years ago and they drive insane. (it’s a 5 lane road and there are there 8 lanes of cars trying to drive on it)
Went for the Dragon Boat Festival. Plane was late and missed the actual race..Ugh.
My Wife’s Cousin open a cosmetics factory 20 years ago and has her own line of cosmetics. She is a RMB Billionaire (My BIL is a RMB Millionare).
Are they invested in the Chinese stock market?? Hell, NO! Both her Cousin and Brother both called it a stock market bubble and have no intention of losing money on it. Her Cuz it won’t last 6 months (remember this was 2 weeks ago). They say the prevailing thought of Chinese investor is that the government won’t let it drop. They had a hard time trying not to laugh while telling me that.
They said housing prices are down for most of China but not Shanghai. I told them Shanghai is like NYC or London and has a bit of it’s own ecosytem as a financial center.

What I saw in various Chinese English press (NOT the ChinaDaily). I did not go to Shenzen or HK just read about them in China.
Shenzen: Property prices up 6.7% (but even the newspaper said it was due mostly to Shenzen stock market being up so much). Shanghai up just 2.7% and it’s the financial center of China. For most of China property is DOWN or FLAT for 70% of cities.
In 2010 HK was growing at 10% in 2014 it’s was just 2.5%
In one year mainland visits drop from 26.4% of all visitors to 16% in 2014.
Newspaper headline: “Unilever, after years of growth, sees it’s China sales fall of a cliff”

China is clearly slowing. Is it in a western style negative growth recession? I saw enough and talk to enough people with skin in the game to say “No” BUT it is not the China of say 2007, 2010 or even 2013. It does not mean China won’t continue to slow. Currently, my observation is that China is 4-6% growth. Not close to the “around 7%” I keep reading about.

Comment by Professor Bear
2015-07-02 04:54:31

Thx for the great personal anecdotes in your post, and your spelling was just fine.

Another dollop of crow, anyone?

Comment by Mr. Banker
Comment by Ben Jones
2015-07-02 05:35:10

‘Most people are repulsed by the idea of eating crows. The mere mention of eating these unpopular birds is like suggesting eating rodents. It’s a shame, said Norihiko Fujiki, a French-trained chef and owner of the trendy French restaurant Espoir, because if properly prepared crows are delicious.’

“If we can get over our cultural prejudice it would become a gourmet treat,” the 41-year-old told Majirox News.’

‘Fujiki serves such meals as grilled crow in red wine sauce and roasted crow smothered in herbs at Espoir, located in Chino City in Nagano prefecture. A fixed menu that includes crow as the main course costs 6,000 yen ($77).’

“The crow has an image of being sinister, and people see them as scavengers,” he said. “I want to change that.”

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Comment by nhtransplant
2015-07-02 06:04:42

Whenever someone says something is delicious if “cooked properly” what they really mean is it normally tastes disgusting but if they really dress it up a lot you can actually make it almost edible.

Comment by Combotechie
2015-07-02 06:32:05

“Whenever someone says something is delicious if “cooked properly” what they really mean is it normally tastes disgusting but if they really dress it up a lot you can actually make it almost edible.”

“Eating worms is good for you.”

“Healing powers”




Comment by MacBeth
2015-07-02 07:45:01

The French eat crap such as snails.

’nuff said.

Comment by palmetto
2015-07-02 08:36:14

I loves me some escargot with butter and parsley.

Comment by In Colorado
2015-07-02 10:49:57

My dad told me that when he was a teen that he and his friends trapped a crow and roasted it. He said it tasted horrible.

Comment by Biggvs_Richarvs
2015-07-02 11:29:15

Ya they’re really just another mollusk like clams orscallops or even abalone. Loves me some escargots.

Comment by Califoh20
2015-07-02 12:47:34

USA eats McDonalds and drinks Big Gulps.

Comment by NJDude
2015-07-03 16:55:11

Thanks PB, I’ve enjoyed your posts over the years.

Amazing, how hard a person on this board will refute all evidence on China’s troubles.

Comment by Blue Skye
2015-07-02 05:32:27

Thanks NJ!

Comment by Pangolin
2015-07-02 06:11:02

Yes, thanks for the update. Of course it’s ridiculous to think a single guy’s anecdotes mean anything, especially in a country of a billion plus people. And 4-6 percent guess on growth seems close enough to around 7 percent.

Many seem to be more interested in piling on Dan than testing their own confirmation bias. Last time he walked away for a while some stil couldn’t let it go and would constantly bring him up. Is China’s stock market down for the year? Wake me when it is.

Comment by Ben Jones
2015-07-02 06:13:49

‘Last time he walked away for a while’

No, I banned him.

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Comment by Mr. Banker
2015-07-02 06:46:42

“No, I banned him.”

And I’m still here.


Comment by Pangolin
2015-07-02 07:28:10

I did not know that. My bad.

Comment by Mafia Blocks
2015-07-02 10:13:05

Who cares.

What we do know is China is imploding but that we already knew would happen.

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Comment by Califoh20
2015-07-02 13:07:15

but are you actively investing (short) to profit from the collapse? If not, who cares about back seat quarterbacks not in the game.

Comment by Mafia Blocks
2015-07-02 15:36:09

We are bullish on falling prices. How can you not be?

Comment by NJDude
2015-07-03 17:19:08

Definitely slowing. Imploding comes later.

Don’t be so negative with a boots on the ground observation HA

Comment by NJDude
2015-07-03 17:15:52

Your welcome on the update, my friend.

“Of course it’s ridiculous to think a single guy’s anecdotes mean anything, especially in a country of a billion plus people.”
-Ben Jones was a single man with some anecdotes in a country of 300+ million…He was more accurate than all the Fed and Wall Street.

“And 4-6 percent guess on growth seems close enough to 7 percent”.
-Even the Chinese government has said, due to their demagraphics, they need 7+ percent. (That was when the country was doing 10%).

They could limp along at 6% but they are toast if the real growth is 4% due to their demagraphics.

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Comment by Dman
2015-07-02 05:34:26

“Are they invested in the Chinese stock market?? Hell, NO! Both her Cousin and Brother both called it a stock market bubble and have no intention of losing money on it.”

It’s all the retail investors with grade school educations who are driving up the market (or WERE driving up the market). It will be interesting to see how they react when they lose their life savings, especially since the government pushed investing in the stock market as a patriotic duty.

Comment by Professor Bear
2015-07-02 05:44:36

Hair-of-the-dog fix is in force to prevent Chinese margin loan debt defaults from cascading into depression:

Top News
Chinese stocks tumble again, ignoring Beijing’s blandishments
By Pete Sweeney
SHANGHAI | Thu Jul 2, 2015 5:57am EDT

SHANGHAI (Reuters) - China stocks fell sharply again on Thursday, fighting off fresh moves by regulators to restore confidence and raising questions about how much more firepower Beijing can bring to bear before a full-scale panic sets in.

Shanghai’s benchmark share index crashed below 4,000 points for the first time since April - a key support level that analysts said had been seen as a line in the sand that Beijing had to defend, below which more conservative investors would start ejecting from their leveraged positions, widening the rout.

Chinese markets, which had risen as much as 110 percent from November to a peak in June, have collapsed at an incredibly rapid pace in since June 12, losing more than 20 percent in jaw-dropping volatility as money surges in and out of the market.

That drop has wiped out nearly $3 trillion in market capitalization, more than the GDP of Brazil.

In the latest move to arrest the slide, China’s securities regulator late on Wednesday relaxed rules on using borrowed money to speculate on stock markets, letting brokerages set their own tolerance level on margin calls and allowing the roll-over of margin lending contracts.

“I think this is the right dose of medicine,” said Hong Hao, chief strategist with BOCOM International. “The recent slump was largely driven by margin calls, so if brokerages don’t force liquidation … the market slide should be stemmed, at least for now.”

But there was no immediate relief, with the CSI300 index of the largest listed companies in Shanghai and Shenzhen dropping 3.4 percent, while the Shanghai Composite Index lost 3.5 percent, to 3,912.77 points.

Comment by Pangolin
2015-07-02 06:02:47

If things start to go south why won’t they just print more dollars or yuan or bitcoins. Seems to have worked last time.

Comment by Blue Skye
2015-07-02 06:36:55

It’s a massive credit bubble. It stops working when the donkey’s back breaks. More donkeys is what they need.

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Comment by NJDude
2015-07-03 17:07:50

So true, Blue Skye.

My wife, city born and raised, (university graduate) and her first husband lost all the money invested in the 2000 Chinese stock bubble. She has refused ever since to buy into the Chinese market.

This time they sucked the high school graduates and rural immigrants into the market.

Don’t know who’s is left to lose all their savings.

Comment by Biggvs_Richarvs
2015-07-02 11:39:24

You can’t print more bitcoins - that’s one of the things that make it more interesting and at least theoreticaly more stable than the dollar. It’s like saying you can just print more prime numbers - there just are however many there are, and additional ones require a metric pantload of computational power to discover.

The extreme fluctuation in value like so many other things was the result of bubbles fueled by idiots.

Once it actually settles into a steady value state, it will likely hold it’s value better than most government backed paper.

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Comment by Blue Skye
2015-07-02 12:39:16

“You can’t print more bitcoins”

That right there is crazy talk. All of them were made up to begin with. Now there are a dozen other such gimmicks. The only limit is that the price of such valueless “bits” cannot fall below zero.

Comment by MightyMike
2015-07-02 13:42:04

It’s like saying you can just print more prime numbers - there just are however many there are, and additional ones require a metric pantload of computational power to discover.

Has a proof been published on that? Is the number of prime numbers finite or infinite?

Comment by Biggvs_Richarvs
2015-07-02 14:47:26

The prime numbers thing is just an analogy. The process for discovering them is actually quite intensive, and they can’t just be magically made up and more than new prime numbers are. They must be found, and they are getting harder and harder to find.

Here’s an article from The Economist that has the basics:


And there are many more out there. It’s not a perfect system, but arguably it may be much better in many ways than our current monetary systems. The chief of which is that it doesn’t have a privately controlled central counterfeiting operation bank able to create new ones at will. Much like physical gold, new bitcoin must be discovered using a very intensive process.

And of course there are other crypto currencies out there with different algorhithms, but Adam Smyth totally applies - their value will be a function of how rare their units are (supply) and how many people are interested in using them (demand).

Bottom line: You can’t quantitatively ease a Bitcoin.

Comment by Biggvs_Richarvs
2015-07-02 14:53:56

It’s like saying you can just print more prime numbers - there just are however many there are, and additional ones require a metric pantload of computational power to discover.

Has a proof been published on that? Is the number of prime numbers finite or infinite?

It’s infinite, but our ability to discover them after they get past a certain size is very limited. That’s the principle bitcoin operates on - a natural mathematical limitation on supply.

Comment by redmondjp
2015-07-02 08:43:24

Well, it very well could also be due to the Chinese 1% that has so much excess cash that they don’t know where to put it.

Comment by Bring Back the WPA
2015-07-02 07:55:17

Thanks for the fascinating “boots on the ground” report. You can’t always glean the truth from economic statistics and financial indices.

Comment by NJDude
2015-07-03 17:00:22

Thanks, I hope you keep posting. I may not be able to respond much, but I do try to keep up with Ben’s blog.

Comment by Puggs
2015-07-02 09:27:11

Repent Dan! The end is nigh!!!

Comment by Professor Bear
2015-07-02 19:14:14

So says my wife.

Today it’s polygamists filing for marriage licenses; tomorrow, dogs and cats.

Comment by frankie
2015-07-02 02:15:17

I fell out of love with London on the A2 outside Greenwich. The tower blocks rose like teeth from the horizon, shrouded on a clear day in brown-grey vapour – stale coffee breath of the overworked capital. Queuing for the Blackwall Tunnel gives you time to contemplate the perversity of it all: drumming the steering wheel, cursing the other drivers, jostling for position on the tarmac tongue of the beast, competing to be swallowed first.


Fell out of love, I don’t think so they have just been priced out.

ondon is without question the most popular city for investors,” says Gavin Sung of the international property agents Savills. “There is a trust factor. It has a strong government, a great legal system, the currency is relatively safe. It has a really nice lifestyle, there is the West End, diversity of food, it’s multicultural.” We are in his office in a block in the centre of Singapore and he is explaining why people from that city-state are keen to buy residential property in London.


Comment by Raymond K Hessel
2015-07-02 11:41:19

London, according to Max Kaiser, is the global epicenter of financial fraud. JP Morgan outsourced its fraud to London (the London Whale) and who knows what other surprises are percolating under the surface?

Comment by Albuquerquedan
2015-07-02 02:39:13
Comment by Professor Bear
2015-07-02 05:31:14

CNN Money
Personal Finance
Investing Guide
Why China’s crazy stock market is getting scary
By Charles Riley
What’s happening in Chinese markets?
Fill in the blank: In recent weeks, China’s stock markets have __________________.
A) Wiped out as much as $2 trillion of investors’ wealth.
B) Swung by as much as 10% in a matter of hours.
C) Scared the living daylights out of millions of shareholders.
D) All of the above.

Yes, correct! The answer is “all of the above.” China’s stocks markets have been swinging wildly since the middle of last month. One minute shares are up 6%, the next they’re down 5% and plunging into a bear market. The main Shanghai market lurched lower again Thursday, dropping 3.5%.

Here’s what you need to know:

1) First, relax — at least for now. Unless you’re reading this from China, you probably don’t have much invested in these markets. Foreigners own just 1.5% of Chinese shares, according to Capital Economics. That number is growing, but only very gradually.

2) For Chinese investors, however, it’s been a very wild ride. The Shanghai Composite — the world’s third largest stock exchange if you add up the value of its companies — has lost 24% since June 12. The bears are growling even louder on the smaller Shenzhen Composite, down roughly 30% in the same period.

3) Right, but those markets are still up for the year? Yes, that’s true. The sharp losses follow a long bull run. The Shanghai Composite is still up 20% since Jan 1.

4) Still, there’s a lot of pain out there, especially among retail investors. Just 10% to 12% of Chinese households own shares, but a wave of newbie investors have flooded into the market this year. Brokers opened four million new accounts in a single week in April, according to BlackRock.

5) Analysts have come up with a bunch of theories to explain why the bubble burst. Here’s the most compelling: Shares prices had got way ahead of economic growth — now at its weakest since 2009 — and company profits, which are actually lower than a year ago.

6) Particularly troubling is an explosion in margin trading. That’s when investors buy stocks with borrowed money. When margin bets go sour, investors are forced to quickly pay back huge amounts of cash.

7) Things could get much worse. According to Oxford Economics, shares may have to fall another 35% or so to bring them into line with long-term averages.

8) Trouble in the stock market has the potential to ripple through the Chinese economy, the second biggest on the planet with trade ties to nearly every country. Another 30% fall would erase roughly $1 trillion in wealth. That could have a big impact far beyond China.

8) Beijing is worried and is trying to prevent panic. The central bank has already cut interest rates to a record low. Market regulators have tried to reassure investors by blaming “irresponsible internet hearsay” and critical commentaries for “disturbing market order.”

9) But official moves could simply pump more air into the bubble, risking an even bigger crash. Regulators further relaxed rules on margin trading Thursday.

Comment by Dman
2015-07-02 05:46:18

“The Shanghai Composite is still up 20% since Jan 1.”

Yes, but anyone who bought stock since Jan 1 is lucky to have broken even, but most have suffered huge losses. The newbie investors who’ve been driving up the markets have to be running for the hills right now, and the smart people won’t touch stocks. Who will drive up prices now?

” Regulators further relaxed rules on margin trading Thursday.”

Problem solved!

Comment by Professor Bear
2015-07-02 05:50:35

Subprime margin lending will save the China stock bubble from collapse!

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Comment by Blue Skye
2015-07-02 05:36:29

Full crow territory. Don’t skip the feet, they are the best part.

Comment by Professor Bear
2015-07-02 05:46:29


Comment by Mr. Banker
2015-07-02 05:53:48

The lips, the lips are the best part.

Comment by Mr. Banker
2015-07-02 06:06:31

The best way to serve crow is having the crow’s foot stuck way far into the beak.

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Comment by Professor Bear
2015-07-02 19:16:49

Out, out brief candle.

ft dot com
July 1, 2015 11:19 am
Reversal of China’s stock market rally breeds anger and regret
Gabriel Wildau in Shanghai
Chinese stock investors monitor their share prices at a stock brokerage firm in Huaibei, east China’s Anhui province on June 4, 2012. Chinese investors took notice after the key Shanghai stock index ended down 64.89 points — exactly matching the numerals in June 4, 1989 — the date of the Tiananmen Square crackdown. CHINA

At a stock trading hall for retail investors near People’s Square in Shanghai on Wednesday, the mood is glum.

Shenyin Wanguo, like other Chinese brokerages, maintains its hall for investors to hang around, make a few trades and share tips. Among the mostly elderly investors there, zest for market speculation goes hand-in-hand with the socialist conviction that the government can and should protect them from risk.

“Even I, an old party member who started playing the market in the 1990s — I don’t believe the regulators any more,” says Ms Xu, 76-year-old retiree.

China’s main stock index lost 5 per cent on Wednesday, shrugging off an interest-rate cut by the central bank over the weekend. The market has now tumbled 22 per cent since hitting a seven-year high on June 12. Ms Xu blames the securities regulator for approving too many initial public offerings, siphoning demand away from existing shares. She wants the regulator to slow the flow of IPOs to one per month.

She also lost money punting on internet stocks amid pledges by top leaders to promote the technology sector. ChiNext, the Shenzhen-based start-up index, had more than tripled in the year to early June but has since plummeted 30 per cent.

“The country is promoting ‘internet plus’ so I bought some internet-themed stocks,” she says. “Their results looked good. But then came a few days of limit-down. Now I’m stuck,” she says, referring to the maximum 10 per cent limit on a stock’s gain or loss on a single day.

Reflecting the surge of retail investors into the market, trading accounts holding at least some stock hit 68m by the end of May, up 27 per cent from a year earlier, according to clearing house figures.

Yet analysts say the roots of China’s stock boom, and its unfolding bust, lie not in old-fashioned retail trading halls, which are steadily disappearing. Instead, margin lending, which did not exist during China’s last big equity boom and bust, has played a central role in the current cycle.

Official margin lending through securities brokerages peaked at Rmb2.3tn ($371bn) on June 19, up from just Rmb403bn a year earlier. Goldman Sachs estimates such lending equals 12 per cent of the free-float market capitalisation of margin-eligible stocks, and 3.5 per cent of gross domestic product, “both of which are easily the highest in the history of global equity markets”.

But even that figure fails to capture the full extent of leveraged stock investing. In addition to brokerages, grey-market margin lending through third parties has pumped an additional Rmb500bn to Rmb1tn in borrowed money into the market, according to estimates from Haitong Securities.

Brokerages limit margin leverage to a ratio of two to one and require clients to put up at least Rmb500,000. By contrast, Xunqianwang, a company that connects punters with borrowed money, allows leverage of up to six to one, and requires as little as Rmb2,000 of the client’s own funds. The company, whose Chinese name translates as “Search for Money”, boasts on its website that new clients can gain approval in an hour.

“We can still control the risk because we strictly examine and assess every client,” says Zhong Jingtian, founder and chief executive. The company restricts which stocks a client can buy and does not give loans to a single client exceeding Rmb3m.

Analysts say the proliferation of margin lending creates the risk of a snowball effect as margin investors, faced with mounting losses, are forced to liquidate their positions unless they can post additional collateral.

David Cui, equity analyst at Bank of America Merrill Lynch, estimates that the Shanghai Composite would need to fall an additional 40 per cent for large-scale margin calls to kick in on official margin lending.

“However, this doesn’t mean that margin call is not a serious risk right now,” he wrote in a note on Wednesday. “The selling pressure so far has mainly come from stock-related borrowings via various unofficial channels where the leverage is much higher.”

Comment by Professor Bear
2015-07-02 23:13:56

By contrast, Xunqianwang, a company that connects punters with borrowed money, allows leverage of up to six to one, and requires as little as Rmb2,000 of the client’s own funds. The company, whose Chinese name translates as “Search for Money”, boasts on its website that new clients can gain approval in an hour.

Subprime margin lending at massive leverage ratios is a great recipe for blowing an unsustainable asset price bubble. It works the same way for Chinese stocks as it does for U.S. residential real estate.

Comment by Albuquerquedan
2015-07-02 02:42:19

Home prices in Shenzhen, Guangdong province, have risen to record levels, helped by limited supplies and further relaxations in purchase policies, industry experts said on Wednesday.

According to a survey conducted by the China Index Academy, an independent research institute focusing on the housing industry, Shenzhen led all cities in terms of housing price increases during the past six months, with new residential property prices surging by 6.58 percent in June from a month earlier.

Prices for second-hand houses rose by 8.59 percent in June from a month earlier, and by a dramatic year-on-year surge of 19.12 percent, the survey said.

“The price increases have mostly been triggered by the acute shortage in housing supply,” said WangFeng, director of the Shenzhen Real Estate Research Center.

New homes in Shenzhen are mostly developed after the renovation of old urban areas, a process that takes a relatively long time, according to Wang.

“The supply shortage has helped push up new housing prices,” he said.

According to Wang, a growing number of residents have developed strong demand for new houses as Shenzhen has developed into one of the most competitive cities in China. The relaxed purchase policies have also helped drive the price rise, according to Wang.

In March, China reduced down payment requirements for buyers of pre-owned housing to 40 percent from the previous 60 percent, and exempted apartments held by individuals for over two years from certain sales taxes.

Zeng Li, a senior researcher with global property service company Jones Lang LaSalle, attributed the burgeoning Shenzhen housing market to the positive wealth effect brought about by the stock market in April and May.

“There is anecdotal evidence to suggest that the positive wealth effect following a surging domestic stock market has played a role and it may be one of the reasons why Shenzhen has so far outperformed markets in other cities,” she said.

According to data from China Securities Depository and Clearing Co, residents from Guangdong opened the biggest number of new stock accounts among all regions in China in 2014, with Shenzhen residents accounting for about half of all new accounts in the province.

“Given the strong historic relationship between the performance of the domesticstock market and the residential property market, it is easy to see how the positive wealth effect may have contributed to the recent surge in sales volume and prices,” she said.

According to JLL’s preliminary data, new home prices in Shenzhen’s high-end residential property market grew by 7.5 percent in the second quarter of the year, with asking prices in some projects increasing by as much as 30 percent year-on-year.

The volatilestock market in the past two weeks is unlikely to reverse the burgeoning recovery in the Shenzhen housing market, according to Zeng.

“The fundamentals underpinning Shenzhen’s residential property market remain strong, with more demand being generated by the expansion of the local economy and Shenzhen’s office market,” she said.

Comment by Mafia Blocks
Comment by Dman
2015-07-02 05:53:05

““There is anecdotal evidence to suggest that the positive wealth effect following a surging domestic stock market has played a role”

“According to data from China Securities Depository and Clearing Co, residents from Guangdong opened the biggest number of new stock accounts among all regions in China in 2014, with Shenzhen residents accounting for about half of all new accounts in the province.”

Shenzhen real estate is being pushed up by all those stock market profits. So how’s that stock market doing?

Comment by AmazingRuss
2015-07-02 12:36:27


Comment by Albuquerquedan
Comment by redmondjp
2015-07-02 08:57:01

When your exhaling breath is considered a toxic substance . . . [I'm drawing a blank here, you fill in the rest]

Comment by Raymond K Hessel
Comment by Raymond K Hessel
2015-07-02 03:06:40

Prepare for buyer’s remorse, FBs who bought at the top of the bubble.


Comment by Dman
2015-07-02 06:05:30

From the article:

“For homeowners currently locked in at a low rate, rising mortgage rates could represent a budgetary curveball should they decide to buy another home in coming years. Homeowners used to a certain monthly mortgage payment may balk at paying a higher amount per month in financing costs for a home roughly comparable to their current residence, to say nothing of a home that is more expensive.

In this way, higher mortgage rates – and higher prices! – make it more difficult if not impossible for households to move to different home, which cuts housing turnover and sales and puts downward pressure on prices: the “mortgage rate lock-in” phenomenon, as it’s called.

“For decades, homeowners haven’t had to worry about that,” the analysis warns. “By this time next year, they’ll need to start.”

“This is another success of the current monetary policies, and the no-holds-barred credit boom they have engendered. They’ve led to a convoluted and precarious situation where nearly all assets, including homes, are overpriced, and not just by a little. It will unwind, as these things always do over time, and for many people, a home will once again become an expense rather than that wealth-producing asset that they were promised it would be.”

The “mortgage rate lock-in phenomenon,” coming soon to a homeowner’s nightmare near you.

Comment by oxide
2015-07-02 06:33:19

And here I though higher mortgage rates led to lower prices. Isn’t that what all those bond posts were about?

Comment by Dman
2015-07-02 08:10:07

That’s what the article is saying:

“In this way, higher mortgage rates – and higher prices! – make it more difficult if not impossible for households to move to different a home, which cuts housing turnover and sales and puts downward pressure on prices.”

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Comment by oxide
2015-07-02 08:21:00

You may want to inform the rest of HBB. Many posts look like this:

1. Convoluted news about the bond market
2. ??????

Comment by Ben Jones
2015-07-02 08:40:30


Mortgage rates fell for years, at the same time foreclosures piled up by the millions.

Comment by Puggs
2015-07-02 09:29:46

ANYONE who buys a big ticket item now or drops money in the market is a SUCKER.

Comment by Pangolin
2015-07-02 07:35:43

Anything that could damage housing will not be allowed to happen. As the fed approaches liftoff possibly as early as this September, blah blah blah. Another six months then another then another.

“Never ask a Navy Man whether he’ll have another drink cause it’s nobody’s goddamn business how many he’s had to drink already. Am I right?” Bishop Pickering, Caddyshack, 1980.

Comment by Mafia Blocks
2015-07-02 11:26:57

…. at their own peril.

They’ve already collapsed housing demand to 20 year lows. To what end? 30 year lows? 40 year lows?

It doesn’t matter what you think your house is worth. There is no buyer in an environment of millions of houses for sale.

Housing Demand Plunges To 20 Year Low


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Comment by Raymond K Hessel
2015-07-02 03:12:08

Looks like Da Boyz are exiting Wall Street’s Pump & Dump Ponzi markets.


Comment by Raymond K Hessel
Comment by Professor Bear
2015-07-02 03:27:00

Grexit on or off?

Comment by Professor Bear
2015-07-02 04:15:39

Odds that someone will get burned are at 100% certainty.

m dot ft dot com/markets
Home > Markets
Why Grexit odds are probably 99% wrong
Ralph Atkins in London

What is the probability of Greece exiting the eurozone? The fluctuating survival chances of the eurozone’s weakest economy are hugely important for global financial markets. Its continuing membership of Europe’s monetary union would avert a disruptive market correction, at the very least.

Statisticians would say the odds are impossible to calculate. “Grexit” — Greece’s exit — would follow a sequence of events, decisions and emotional choices by voters and politicians, and unpredictable economic and financial forces. Even if point estimates were possible, this week’s news flow shows they would change from hour to hour.

But that has not stopped economists and strategists attaching quite precise numbers to Grexit risks. On Monday, Berenberg Bank raised the possibility of Grexit from 40 per cent to 55 per cent. BNP Paribas reckoned it had increased only to about 20 per cent. But Standard & Poor’s rating agency saw a 50 per cent likelihood. Writing for the Financial Times, Mohamed El-Erian, economic adviser to Allianz, saw an 85 per cent probability. Nobody was specific about the timing.

Are such estimates of any use? Possibly, as a shorthand way of expressing levels of concern — or grabbing headlines. But the range of estimates highlights their spurious accuracy (are you sure it is 55 per cent and not 62 per cent?), which in turn reveals markets’ inability to price political risks. In fact, a widespread view among traders recently has been that Grexit risks are impossible to trade, which helps explain why share and bond price movements have been relatively limited as events have unfolded in Athens.

The danger, however, is that assigning numerical probabilities creates the false impression that markets have superior knowledge about the future; the risk is of being caught out badly when they are wrong.

Comment by Professor Bear
2015-07-02 04:57:43

Business Insider
A Greek politician told us Grexit will ‘100%’ happen if ‘No’ wins on Sunday — and plans are already being made
Mike Bird
Jul. 2, 2015, 2:06 AM
Greece protest eu flag REUTERS/Alexandros AvramidisAnti-austerity protesters march in front of a destroyed EU flag during a demonstration in Thessaloniki, Greece July 1, 2015

ATHENS, Greece — Contradictory polls are showing that any result is possible in Greece’s upcoming referendum.

The “No” campaign against the bailout seemed to be in the lead on Tuesday morning, while another later in the day showed “Yes” narrowly ahead.

A Yes vote would mean agreeing to a bailout deal set down by Greece’s European creditors, which the government is against — though since Greece’s existing programme expired on June 30, it’s not even clear that’s on the table any more.

A No vote would reject the proposals, which aim for more austerity and reforms — which could even mean Greece leaving the eurozone.

Comment by palmetto
2015-07-02 05:44:09

If “No” wins, it’s my understanding the pensioners will take it in the shorts.

Comment by Combotechie
2015-07-02 06:53:43

Magic! Magic will save them!

It’s worked up to now.

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Comment by Raymond K Hessel
Comment by Professor Bear
2015-07-02 05:10:07

It’s officially off by over twenty percent in just two weeks time. Mathematically speaking, this reverses 40% of the 100% gain over the preceding year and wipes out untold amounts of margin debt that was used to speculate in the Chinese stock markets.

How much farther it is to the bottom, nobody knows.

Comment by Raymond K Hessel
2015-07-02 11:45:33

If you’re one of the legions of Chinese margin-debt FBs, math and the trend are not on your side.

Comment by frankie
2015-07-02 04:09:21

It’s the hokey cokey bear.

You stick grexit in, you stick grexit out
You do the grexit cokey and you turn around
That’s what its all about.

Comment by Professor Bear
2015-07-02 04:11:13

Which way she goes,
Nobody knows.

Comment by frankie
2015-07-02 04:59:37

Oh I think we all know which way she will go, we just don’t know when.

An old trading saying…. that, by the way is very true… “The market can stay irrational a lot longer than you can stay solvent!”…. Thinking about a trade in terms of what the world can and can’t afford can be a dangerous habit.

Comment by Professor Bear
2015-07-02 05:13:37

Anything that cannot go on forever will stop.

–Herbert Stein’s Law

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Comment by AbsoluteBeginner
2015-07-02 05:56:28

It’s an emotional stock market. Bring on the robots!

Comment by palmetto
2015-07-02 06:19:35

Hi-ho, here we go:

Polygamist trio applies for marriage license:


Comment by nhtransplant
2015-07-02 06:49:11

That’s a one man two women setup. It’ll never fly. If folks are serious about legalizing multiple partner relationships they are going to have to forge the way with a one woman/multiple man arrangement so the feminists and victim classes can get behind it. Once that becomes legal they can hardly say no to one man with many wives, which would end up being the more common arrangement anyway.

Comment by palmetto
2015-07-02 07:02:32

Stay tuned! And watch for “child bride” arrangements, too. After all, we MUST accommodate immigrants from South of the border and Middle East and Asia. We MUST!

Comment by rms
2015-07-02 07:27:31

Anything goes to buy a vote.

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Comment by In Colorado
2015-07-02 09:07:31

Stay tuned! And watch for “child bride” arrangements, too.

I strongly suspect that pedophilia will eventually be decriminalized, and pedos will be able to proudly show off their 12 year girlfriends and boyfriends.

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Comment by Oddfellow
2015-07-02 10:09:36

Unlikely. Assuming by legalizing gay marriage. we’re moving in a ‘progressive’ direction, progressives are historically more likely to want to raise the marriage age. It’s the talibans of the world who want, and have, child brides.

Comment by In Colorado
2015-07-02 10:25:22

FWIW, the age of consent is lower in “progressive” Europe, where it is as low as 14 in some countries, so it’s not just the talibans of the world who want to diddle with minors.

Comment by palmetto
2015-07-02 10:43:18

Amen, brother!

And this:

“I strongly suspect that pedophilia will eventually be decriminalized, and pedos will be able to proudly show off their 12 year girlfriends and boyfriends.”

The Hillsborough County school system in Florida is a real mess on this issue. Seems like not a week goes by they’re featuring some teacher or worker on the news for going at students.

I don’t know the exact stats, but it seems like the main culprits are these over-estrogenized female teachers with visions of Mary Kay LeTourneau dancing in their heads.

Comment by Puggs
2015-07-02 13:31:49

They too claim they were “born that way”.

Comment by MightyMike
2015-07-02 13:47:01

The evangelical fundamentalist types should be in favor of kids getting married at 14. It was probably quite common in biblical times.

Comment by redmondjp
2015-07-02 16:36:52

Not just then but much more recently.

I just read the obituary of a (mormon) women from Idaho born May 1933, who got married in March of 1949.

Do the math on that one. And she outlived that husband and married a second one, outliving him as well (one has to wonder which of the two husbands she will be with forever in the afterlife, according to mormon teachings, but that’s for another forum).

Comment by Oddfellow
2015-07-02 21:09:32

” the age of consent is lower in “progressive” Europe”

True, but that’s for teens banging each other. If a 40 year old goes at it with a 14 year old in Germany, s/he will be in trouble.

Conversely, age of marriage is usually lower in more regressive countries, and states, higher in more advanced areas.

Comment by Raymond K Hessel
2015-07-02 11:47:07

And watch for “child bride” arrangements, too. After all, we MUST accommodate immigrants from South of the border and Middle East and Asia. We MUST!

Hey, don’t micro-aggress them with your oppressive western values!

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Comment by In Colorado
2015-07-02 09:05:19

Once that becomes legal they can hardly say no to one man with many wives, which would end up being the more common arrangement anyway.

Given that an ever increasing number of men don’t even want one wife, I can’t imagine anyone, besides LDS fundamentalists, taking on multiple brides.

Comment by Blue Skye
2015-07-02 12:43:16

I am sincerely happy that being unmarried is not illegal.

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Comment by Oddfellow
2015-07-02 10:15:38

One key difference between gay marriage and polygamy is that gay marriage fits rather well into the legal system, whereas polygamy would be a legal nightmare.

Comment by rj chicago
2015-07-02 10:34:45

Palmy - if you want to see where this depravity will lead - go read up on a really bad Roman leader (Ceasar) named Tiberius especially his little brothel and pedofile compound on the Isle of Capri back in the day in the Roman Empire (the corrupt thing that evolved from the Roman Republic).
Tiberius was a disgusting, appalling pedofile and murderer who saw nothing wrong with putting children on full display in his court and if he did not like the circuses he saw simply threw them off a 1000 ft. cliff to their deaths.
Kinda redefines eating crow doesn’t it?
How u?

Comment by palmetto
2015-07-02 11:20:56

Doin’ fine, rj. Empires ALWAYS go this way on the way out. Abuse of children, sexual and otherwise, is the final act.

Yes, I’ve read enough of ancient Rome to turn my stomach.

This is also why the Aztecs and Incas were conquered by the Spanish. It is amazing the similarities to Rome, Egypt.

Comment by Oddfellow
2015-07-02 20:23:30

What was the age of consent in Spain when they conquered the Aztecs?

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Comment by Raymond K Hessel
2015-07-02 11:50:48

It was the bread and circuses mentality and pandering to the basest appetites of the population that led to this depravity and indifference toward moral rot and corruption. The fact that 95% of our electorate voted for crony capitalism with their votes for Obama, McCain, and Romney shows ‘Murica is well down the same road to decline and collapse.

Comment by Califoh20
2015-07-02 12:18:35

keep gov out of it!!

Comment by Professor Bear
2015-07-02 06:34:14

Are U.S. markets immune to recent developments in Greece, China and Puerto Rico?

Comment by redmondjp
2015-07-02 09:00:22

Didn’t you read the disclaimer when you signed up for your brokerage account?

Comment by Ben Jones
2015-07-02 06:56:10

‘In the New York City investigation, inspectors weighed 80 items from eight Whole Foods stores and found inaccurate labeling on every item, according to the city’s Department of Consumer Affairs.’

‘For example, inspectors weighed eight packages of chicken tenders, which were priced at $9.99 per pound. Consumers who purchased these packages would have been overcharged by about $4.13 on average, according to a DCA release. One package was overpriced by $4.85.’

“Straight up, we made some mistakes and we want to own that,” Whole Foods co-CEO Walter Robb said in a two-minute video apology alongside John Mackey, the chain’s co-founder.’


Comment by Pangolin
2015-07-02 07:40:47

But buying at Whole Foods makes me feel special and wonderful, just like I’m listening to NPR or walking in a Susan Komen pink walkathon. It feels almost as good as voting for Hillary (”H”).

Comment by oxide
2015-07-02 13:23:00

For reference, the libs have *hated* Whole Paycheck ever since John Mackey expressed his displeasure for Obamacare in an NYT/WSJ op ed back in 2010. Mackey had built his empire on the backs of well-meaning hippies and greenies and they felt betrayed.

And Whole Paycheck had been going boutique long before. I was stunned to see new stores with gourmet chocolates, custom nut roasting, wine tasting, baby clothes which cost more than my business suits… and a lot of overpriced “conventional” fruit in the produce section. I think a lot of limo liberals used the Obamacare op ed as an excuse to switch to smaller hippie stores and farmer’s markets.

Comment by In Colorado
2015-07-02 08:59:46

‘For example, inspectors weighed eight packages of chicken tenders, which were priced at $9.99 per pound. Consumers who purchased these packages would have been overcharged by about $4.13 on average, according to a DCA release. One package was overpriced by $4.85.’

“Straight up, we made some mistakes and we want to own that,” Whole Foods co-CEO Walter Robb said in a two-minute video apology alongside John Mackey, the chain’s co-founder.’

Mistakes? Isn’t the label generating process semi-automatic? How does the process consistently misweigh the chicken? It had to be deliberate.

Comment by Ben Jones
2015-07-02 09:00:47

In other news, Whole Foods reported an increase in YOY profits.

Comment by redmondjp
2015-07-02 09:02:53

You mean, like how they also mistakenly relabel the expired packages of meats?

Comment by Raymond K Hessel
2015-07-02 11:53:02

All those yoga pants stretched over bottoms you could bounce a quarter off of make the Whole Foods experience well worth it, on the whole.

Comment by redmondjp
2015-07-02 16:38:53

You’re referring to the tightly-wrapped packages of lean meat, right?

Comment by nhtransplant
2015-07-02 07:03:33

So who is Trump going to sue today? Right now I think we have Macy’s, NBC and Univision on the list. The social justice warriors are really out to get him. I wonder if they are afraid his message will resonate if they fail to remind people of the consequences for giving voice to unauthorized opinions. If he sticks to his guns he should be a lot of fun to watch.

Comment by palmetto
2015-07-02 07:11:59

I’m in.

A few words for Macy’s and NBC:

McDonald’s. I’m lovin’ it.

He’s better off without NBC anyway. That network has been stinkin’ out the joint for years.

But they believe in free screech! And freedumb of the press.

Comment by palmetto
2015-07-02 10:37:01

“That network has been stinkin’ out the joint for years.”

Believe it. All you have to do look at the history of the Tonight Show and listen to some of the jokes in the monologues by Johnny, Jay, Conan and even Dave when he wuz there, to see how they deal with people.

I guess Matt and Lorne learned how to navigate that mine field. Or maybe they’re part of it.

Fallon? Ugh. I have a very strange feeling he’s not long for the world of NBC.

Comment by Bring Back the WPA
2015-07-02 08:40:19

The social justice warriors are really out to get him.

I wish they wouldn’t. As a lib I’d be delighted to see The Donald as the GOP nominee.

Comment by nhtransplant
2015-07-02 08:43:13

Leftists say that whenever they are concerned about someone. First try to scare them off, then mock them and claim they want them to run. Next comes the scare part again but with more intensity.

Comment by In Colorado
2015-07-02 10:45:27

You really think Trump has a snowball’s chance in Hades of winning?

We all know that the GOP nominee will be either Bush, Rubio or Cruz.

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Comment by palmetto
2015-07-02 11:09:45

I think unless the GOP gives Trump the nom, the GOP doesn’t have a snowball’s chance in hell of winning anything except the booby prize. I think they know it, too.

They already fouled themselves with fast track, among other things. And Trump is pushing that trade button hard.

Trump is right on all the things the people are concerned about:

Immigration, trade and Social Security.

Comment by Puggs
2015-07-02 13:34:27

Well, we’ll see what the national mood really is come late September early October.

Comment by Raymond K Hessel
2015-07-02 11:58:15

As a lib I’d be delighted to see The Donald as the GOP nominee.

As a Libertarian-Conservative, so am I. Compared to the Hollow Man candidates put forth by the oligarch-captured Establishment GOP, The Donald says things you’re not supposed to say, but that resonate with ordinary Americans. The contrast between him and the empty suits that are our Republicrat “choices” could not be more stark.

Comment by Puggs
2015-07-02 13:32:58

He ain’t perfect but sez it like it is.

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Comment by Bring Back the WPA
2015-07-02 08:21:01

Bernie Sanders draws 10,000 to rally in Wisconsin… biggest crowd of the 2016 presidential race so far


Memo to Hillary: getting nervous yet?

Memo to Trump: Bernie didn’t pay anyone $50 to hear him speak

Comment by nhtransplant
2015-07-02 08:40:37

Yup, Trump is making people nervous.

Comment by palmetto
2015-07-02 08:55:29

I know, right? I can smell the flop sweat from here, lol.

Comment by In Colorado
2015-07-02 09:12:14

Yup, Trump is making people nervous.

He’s making the GOP elites nervous. Unlike Ron Paul he has his own money and will be heard. His message, especially regarding illegals, will be associated with the GOP, which is still trying to figure out how to pander to Hispanics.

The best thing that can happen to the GOP is for Sanders to not get the Dem nomination and run as an independent.

Comment by Bring Back the WPA
2015-07-02 09:29:35

The best thing that can happen to the GOP is for Sanders to not get the Dem nomination and run as an independent.

Even if this doesn’t happen, I think Jeb is a formidable candidate. Caught part of an interview with him and he has a calm, intelligent, mature and reassuring personality. He’s very presidential. He’s so different from his brother that I think he can sell people on the idea that he’s not George Bush’s 3rd term.

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Comment by palmetto
2015-07-02 09:51:29

Jeebus, I just recovered from a fainting spell. WPA just endorsed JEB! Yep, the lef’ must really be pitting their shants a mile a minute. Because it was one of their own who prevented JEB! from getting his sticky fingers on the Florida pension funds on behalf of Lehman.

Alex Sink, bless ya, lady! Florida could have been Greece. Or Puerto Rico.

Comment by Bring Back the WPA
2015-07-02 10:10:54

Hey c’mon Palm… I didn’t endorse Jeb!, I only said he’s a formidable candidate.

Comment by palmetto
2015-07-02 10:27:16

Well, geez, what am I supposed ta think? You about wrote a love poem there.

Comment by In Colorado
2015-07-02 10:43:21

I find it hard to get excited about “Jeb!”

We all know he’s just another corporatist who is more than willing to sell the American People down the river.

Jeb! Hillary! it doesn’t matter. Either way the shafting will continue.

Comment by Bring Back the WPA
2015-07-02 11:23:30

I find it hard to get excited about “Jeb!” We all know he’s just another corporatist who is more than willing to sell the American People down the river.

You and I know that, and so do some of our friends over on the far right/libertarian side. I was looking at Jeb thru the eyes of the casual voter who doesn’t follow politics and who base their votes on a few commercials.

Comment by nhtransplant
2015-07-02 11:32:45

Jeb is the easiest candidate to demonize if for no other reason than his last name. Play him up and play down the ones who make you wary. Makes sense. Plus on the off chance that he actually won the presidency he wouldn’t be much different than Hillary! anyway.

Comment by Raymond K Hessel
2015-07-02 12:03:12

Caught part of an interview with him and he has a calm, intelligent, mature and reassuring personality. He’s very presidential.

Jeb is an oligarch stooge who is reassembling the same neo-con “advisors” that steered his dim-bulb brother into one debacle after another with epic incompetence. The last thing we need is an oligarchical dynasty.

Comment by Califoh20
2015-07-02 16:34:19

Yes, it does matter. Read House of Bush, House of Saud. You will understand why the Bush family has been awful for America.

At least Hillary can ask the genius Bill C. for advice.

Comment by nhtransplant
2015-07-02 11:30:21

That’s fine by me…I like it when the GOP elites get nervous. I think he makes some on the left nervous as well though. They are used to a more spineless sort of opposition that plays the game by their rules. I’m not predicting him to win the nomination but if he doesn’t back down now the left may not know what to do with him. I guess claiming they hope he wins the nomination is one way to approach it.

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Comment by taxpayers
2015-07-02 09:43:51

a self proclaimed socialist


Comment by Bring Back the WPA
2015-07-02 09:51:35

Your trickle down crap smells worse.

Comment by palmetto
2015-07-02 09:47:00

“Memo to Trump: Bernie didn’t pay anyone $50 to hear him speak”

Didn’t have to. Soros covered it for him. Hope he paid the bills faster than he did in Ferguson. There were some disgruntled rioters, er, uh, warriors there when the smoke cleared.

Comment by In Colorado
2015-07-02 10:27:23

Didn’t have to. Soros covered it for him.


Comment by In Colorado
2015-07-02 10:39:20

The reason I ask is because Soros is far more likely to back Corporatist Hillary as opposed to Sanders the Pinko.

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Comment by palmetto
2015-07-02 10:57:27

Just bein’ flippant. Wouldn’t surprise me though. Wouldn’t put it past Soros to put some money behind Bernie, just to jerk Hillary’s chain and remind her who’s boss.

On the Republican side, Sheldon Adelson is well known to spread the wealth over a number of candidates. So it wouldn’t surprise me to find out some other elephant candidates had paid supporters at rallies.

Say, here’s a juicy story for ya. I know you can read between the lines, so what’s your take?


Three possibilities are:

1) Random abduction

2) Wife was an accountant for a construction company. He was a worker with a grudge, possibly got stiffed.

3) Husband was a commercial pilot. Pissed off the cartel. Capo says “Take care of it, will ya, Jose?”

I’m going with door number three.

Comment by Califoh20
2015-07-02 12:26:38

they all end up as Corporatists! Big banks win, people lose.

I am hoping Rand Paul kicks it into high gear! At least he is not an attorney.

Comment by palmetto
2015-07-02 08:47:20

Does this mean the state department can go full metal keffiyah on the Saudis and de-classify those pages in the 9/11 report? Can they now reveal the role of the House of Bush in the incident?


Jeebus. It’s all fallin’ apart. Shock and awe!

Comment by rj chicago
2015-07-02 09:42:09

I am a man without a country!!!
Happy Independence Day - or what is left of it!!

A good read and reflection on the corruption we live with now.
This today from Jesse’s Cafe Americain…..

” ‘While it has taken a long time, and extraordinary monetary policy actions, the U.S. economy is now close to full employment…’

Stanley Fischer, Vice Chairman Federal Reserve, Monetary Policy In the US and Developing Countries, 30 June 2015

While officialdom celebrates the unemployment rate falling to 5.3%, even a cursory look at the numbers today tells the real story for those who would look at them.

Wage growth in the latest month was 0.0%. That is consistent with a long trend of wage stagnation.

Non-Farm payrolls came in light, and the prior month was revised sharply lower from 280,000 to 254,000. But it made for a good cheery headline last month.

For a more contemporary number, new unemployment claims rose to 281,000 and continuing unemployment claims rose to 2,264,000.

The reason that the unemployment percentage is falling is that as more unemployed workers fall off the roles of unemployment compensation the government stops counting them as ready to work.

People become discouraged by the bleak prospects of finding gainful employment, and they even fall further into the ‘off the books’ economy that is a portion of the decay caused by policy errors of fiscal blockheadedness and monetary largesse for the one percent.

And the sign of economic vigor and the breadth of economic recovery, the labor participation rate has fallen to a 37 year low.

And the spokesperson comes down from the big house and assures us that the President is thinking about what to do about this terrible situation every day. He has certainly been mulling this over for a long time. And in fairness, most of the Congress could care less about what happens to anyone who does not have a lackey sitting in their waiting room without a sack full of ‘campaign donations’ and honorariums. Oh they may talk a good game, but at the end of the day, they are getting paid.

We are now in the seventh year of The Recovery™.

I know, let’s shove a corporatist trade agreement, trading jobs for corporate profits, down the nation’s throat over the people’s strong objections, and call it a jobs creator in true Orwellian fashion, while transforming the US into a nation of insecure, underpaid servants.

Oh, well done.”

Comment by In Colorado
2015-07-02 10:34:01

I know, let’s shove a corporatist trade agreement, trading jobs for corporate profits, down the nation’s throat over the people’s strong objections, and call it a jobs creator in true Orwellian fashion, while transforming the US into a nation of insecure, underpaid servants.

What is especially amazing is that the exact same thing is happening on both sides of the Pacific. Governments are signing up for the treaty without their congresses and parliaments even being allowed to read it. It’s a corporatist’s wet dream. They now hold all the cards and they now it. What will be next? Will corporations have a feudal era like power of life and death over us? Will constitutions be abrogated and replaced with corporate by-laws?

Comment by rj chicago
2015-07-02 11:43:40

Here is one recent example……
Constitution was abrogated on Thurs and Friday last week as a result of big money buying the court decisions.
Thurs - a throwing out of statutory law and replaced again by a decison to keep Otraumacare in place
Friday - a throwing out of civil law and a politburo supreme court acting like the Pharisees that they are and making up supra natural ‘right’s for a select group of people over and above the majority where not law of its kind existed before.
We have been and continue to be sold out.
I am a man without a country.


Comment by frankie
2015-07-02 09:49:08

Facing a crisis of monumental proportions at home, tens of thousands of people are fleeing a Caribbean island in search of a better life in the United States only to find hardship and struggle on American shores. Their stories sound like those of millions of migrants – poverty at home, where the economy lies in tatters – but they differ from millions of others: they’re already American.

Unable to pay its $73bn debt, Puerto Rico has begun rationing water, closing schools and watching its healthcare system collapse and 45% of its people living in poverty. Emigration to the mainland has accelerated in recent years, activists say, and data shows that from 2003 to 2013 there was a population swing of more than 1.5 million people.

“This new wave of immigration can be compared with the immigration in the 1930s and 40s,” said Edgardo González, coordinator of the Defenders of Puerto Rico, an activist group. The Great Depression and second world war spurred the so-called “Great Migration”, when tens of thousands of Puerto Ricans moved to New York every year for nearly two decades.

Now most Puerto Ricans are arriving in central Florida, González said, but many cannot find jobs or even housing. “Some might stay with family for a few weeks, but for those who don’t have family, people end up homeless because of the lack of services,” he said.


Comment by Bring Back the WPA
2015-07-02 10:16:22

Why not cut PR loose and let them become an independent nation, like most of the other Caribbean islands? Maybe that’s the best deal to be had… have the US pay off most or part of the debt then cut the cord.

Comment by In Colorado
2015-07-02 10:37:53

Puerto Ricans are US citizens. What would happen to their US citizenship should Puerto Rico be “cut loose”? Would it be revoked? Is there any precedent for doing that? If their citizenship can be revoke, wouldn’t that mean that any US citizen could have his citizenship revoked?

Comment by palmetto
2015-07-02 11:13:29

Well, heck, don’t be confusing people with the facts, now, Colorado.

The US is nailed to Puerto Rico, like it or not. Unless they use some grandfather clause to dump the island. Like, if you were born prior to the dump, you’re a citizen and grandfathered in.

There IS a sentiment among a certain group of islanders for independence, though.

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Comment by taxpayers
2015-07-02 12:00:29

37 % on food stamps

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Comment by rj chicago
2015-07-02 11:46:17

Was there not a vote / referendum a while back in PR to secede from the US proper and become their own state or country?
I can’t remember when but somewhere in the distant past the whispers in my head this was the case.
Help me remember - my feeble mind can’t keep it all in place.

Comment by rj chicago
2015-07-02 12:19:32

If you google this…..

puerto rico vote for statehood

There are alot or years where referenda have been floated to no avail.

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Comment by redmondjp
2015-07-02 16:45:14

You mean, kinda like Greece become an EU member?

Comment by Califoh20
2015-07-02 12:05:50

People who think Solar technology will not improve, are like the buffoons who said people will never have a home PC.

Has noting to do with speed or Moore’s effect. Just ignorance of technology advancing beyond ones small box they live in.

Battery technology will change everything! Sorry, fossil fuel fans and planet haters.

Comment by rj chicago
Comment by palmetto
2015-07-02 12:48:51

“Well, somebody’s doing the raping, Don! I mean somebody’s doing it! Who’s doing the raping? Who’s doing the raping?” he asked.


“If you go to Fusion, you will see a story: About 80% of the women coming in, you know who owns Fusion? Univision! Go to Fusion and pick up the stories on rape. It’s unbelievable when you look at what’s going on. So all I’m doing is telling the truth,” Trump said.

The actress Salma Hayek has been trying to raise awareness about this for years.

Comment by Neuromance
2015-07-02 12:50:14

Labor force participation has been consistently going down. Some attribute this to an older population and more retirees. However, that seems to be completely INcorrect. For people above 50, the labor force participation is going up, significantly, but for those under 50, it’s going down: http://www.bls.gov/emp/ep_table_303.htm

Labor force participation: http://data.bls.gov/timeseries/LNS11300000

Comment by Califoh20
2015-07-02 13:15:52

trouble ahead:

The insurance protecting shale drillers against plummeting prices has become so crucial that for one company, SandRidge Energy Inc., payments from the hedges accounted for a stunning 64 percent of first-quarter revenue.

Now the safety net is going away.

The insurance that producers bought before the collapse in oil — much of which guaranteed minimum prices of $90 a barrel or more — is expiring. As they do, investors are left to wonder how these companies will make up the $3.7 billion the hedges earned them in the first quarter after crude sunk below $60 from a peak of $107 in mid-2014.

“A year ago, you could hedge at $85 to $90, and now it’s in the low $60s,” said Chris Lang, a senior vice president with Asset Risk Management, a hedging adviser for more than 100 exploration and production companies. “Next year it’s really going to come to a head.”

Comment by Raymond K Hessel
2015-07-02 14:22:44

I wonder which banks and financial institutions sold producers those hedges, and how much they’ve had to pay out so far?

Comment by Puggs
2015-07-03 11:58:39

Betting on oil is ALWAYS bad.

Comment by Raymond K Hessel
2015-07-02 14:18:35

Jim Webb (D) has officially announced he’s running for President. Thank God, an actual choice that doesn’t make me retch. If we lived in a parallel universe where 95% of the electorate wasn’t stupid, we’d have a real hope of getting someone into the Oval Office who isn’t an oligarch stooge, i.e. HillaryJeb, who will perpetuate our current plutocracy. However, given the IDIOCRACY that has overtaken us, President HillaryJeb is practically assured.


Comment by Califoh20
2015-07-02 15:34:01

the odd thing is that 75% of the country think that 95% of the country is stupid.

Comment by Raymond K Hessel
2015-07-02 14:21:07

George Soros, who almost singlehandedly groomed Obama to run for President (and sell the dullards on so-faux “hope ‘n change,” is now backing Hillary with big money. ‘Muricans who vote for these oligarch puppets deserve the a$$-raping they’re going to get.


Comment by Califoh20
2015-07-02 16:31:20

I love rags to riches stories!! The American Dream!! Work hard in your next life and you may not be a hater.

George Soros, a Hungarian-American businessman, stock investor, and political activist, was born on August 12, 1930 in Budapest, Hungary. He is the son of the Esperantist writer Tivadar Soros, a Hungarian Jew who was imprisoned after World War I until he escaped and took refuge in Russia. Soros childhood was spent in the hardships of war; and he was one of the very few people who survived the German occupancy and the Battle of Budapest. In 1947, the 17 year old Soros emigrated to England to live with his uncle who helped him with his educational and living expenses.

He completed his Bachelor of Science in philosophy from the prestigious London School of Economics in 1952. In 1956, Soros came to New York City where, from 1956 to 1959, he worked as an arbitrage trader. Later, in 1959, he served Wertheim and Company as a financial analyst. He left the company in 1963 and joined Arnhold and S. Bleichroeder as the vice-president and held the position till 1973.
In 1991, Soros received the doctoral degrees from Corvinus University of Budapest, and Yale University.

Comment by Raymond K Hessel
2015-07-02 14:37:48

Hey Greeks, how is 30 years of voting for corrupt/socialist politicians working out for you?


Comment by Puggs
2015-07-02 14:51:38

Stay out of the “Hill’s” and “Bush’s”.

Comment by Puggs
2015-07-02 17:33:25

Sorry, stay off the “Hill’s” and outta the “Bush’s”

Comment by phony scandals
2015-07-02 16:13:24

Something is missing from this article that would have been in it if…

Former CNN correspondent, anchor survive motel gunfight
Albuquerque police investigate deadly motel shooting

UPDATED 10:22 PM MDT Jul 01, 2015

ALBUQUERQUE, N.M. —A former CNN correspondent was shot three times late Tuesday night during an attempted robbery at an Albuquerque motel.

Former CNN anchor and Manzano High School graduate Lynne Russell told Action 7 News she and her husband Chuck de Caro were robbed at gunpoint around 11:30 p.m. at the Motel 6 near Coors and Iliff.

De Caro worked as a correspondent for CNN.

Russell said they were exhausted Tuesday night and decided to go to a motel to rest. She had gone to the car to get something when a man put a gun to her head, dragged her back into the motel room and demanded her valuables.

“The man pushed me inside, I was airborne, literally. And (I) landed on the bed, and that was about the time that Chuck came out of the shower,” Russell said. “The man was just wild. He was pointing the gun, and the way that he was acting, it was as if he’d done it before.”

Russell said she and her husband legally carry handguns, and they had them in the motel room.

For a moment, she said, it looked like the thief just wanted her husband’s briefcase.

“He came over, grabbed the briefcase, and I thought for a moment he was just going to leave because he had something,” Russell said. “Then he turned around and he opened fire. My husband returned fire. And he’s a better shot.”

According to police, both men fired multiple rounds.

Russell said her husband was hit three times. He underwent surgery at University of New Mexico Hospital and is expected to be there for a few days while he recovers.

Officers found the other man in the parking lot. He died at the scene.

http://www.koat.com/news/albuquerque-police-investigate-deadly-motel-shooting/33899308 - 144k -

Comment by redmondjp
2015-07-02 16:51:47

Well, score one for the good guys! $5 worth of ammo saved countless thousands in trials and incarceration; that’s called a win for the taxpayers.

Big question here - did husband escalate the situation by going for his gun, or would he have been shot regardless? These are the kinds of life-and-death decisions that every gun owner must contemplate.

The decision is much simpler if you don’t have a gun - you are then just at the mercy of whoever has one on you!

Comment by Califoh20
2015-07-02 16:27:34

Bush 2 said:

“Fool me once, shame on you. Fool me — you can’t get fooled again.”

“I mean a slow weekend for me back then was a handle of Jack and an 8-ball.”

“We ought to make the pie higher.”

“Bill and me would round up a couple ladies, get ’em good and liquored up, and give ’em the Texarkana Tornado.”

“Was I addicted to cocaine? Absolutely not. I just really liked the way it smelled.”

“For the better part of my second term, Cheney was running the show. The rest? He was legally dead for a while ’til we brought him back.”

“Families is where our nation finds hope, where wings take dream.”

“Can I prove that there were WMD’s in Iraq? No, but can you prove there WEREN’T?”

“Rarely is the question asked: Is our children learning?”

“They misunderestimated me.”

Comment by Puggs
2015-07-02 17:31:34

Welp, he’s the decider.

Comment by Puggs
2015-07-02 17:34:44

Exhibit A for NOT legalizing MJ.

Comment by Raymond K Hessel
2015-07-02 18:46:10

I thought after the epic incompetence of the first Bush administration, ‘Muricans would never re-elect him. I was wrong. I will never again underestimate the stupidity of the ‘Murican electorate.

Comment by Raymond K Hessel
2015-07-02 16:52:24

The UK media, as always, is doing a far better job than our corporate media in presenting how grim the situation in Greece is becoming, and its larger implications.


Comment by phony scandals
2015-07-02 17:51:41

Ron Paul: It’s All Coming Apart

“The day of reckoning is at hand,” he said

by Kit Daniels | Infowars.com | July 2, 2015

The United States will likely suffer a Greek-style economic collapse soon because, like Greece, it’s impossible for the U.S. to pay its debt, according to former congressman Dr. Ron Paul.

Dr. Paul pointed out that the U.S. is currently facing several financial bubbles of the same size and scope as the housing bubble which caused the Great Recession.

“We still have another stock market bubble and another housing bubble going on, but the big bubble I think is in the bond bubble,” he said Thursday on the Alex Jones Show. “It’s been going on for 35 years, taking interest rates from 21% down to actually negative.”

“[Central banks] have been getting away with it, so this means distortion, and not only is there money involved, but it also distorted all the investments made during this time.”

And the biggest distortion this encouraged, Dr. Paul added, is debt.

“It encouraged debt for a lot of people, but in particular government,” he continued. “As long as our government is able to print the reserve currency [the U.S. dollar], it’s going to limp along, even though our economy is limping along, but that will come to an end.”

“Right now we’re starting to see the whole thing coming apart; I mean we look at Detroit as an example, we see what’s happening in Greece, they’re worrying about what’s going to happen after Greece is actually recognized as totally bankrupt and there will be other countries.”

Dr. Paul also warned that the central banks will keep trying to delay the inevitable by printing and spending even more money.

“But that’s coming to an end,” he said. “The day of reckoning is at hand.”

Comment by phony scandals
2015-07-02 18:39:23

University of Wisconsin: Complimenting People of Color is Racist

Read the shocking list of racist behaviors being given to faculty

by Paul Joseph Watson | July 2, 2015

Do you have several black friends, compliment people of color, and think that America is a melting pot?

You’re a racist.

That’s according to the University of Wisconsin (Stevens Point) “Examples of Racial Microaggressions,” a list of discouraged phrases and behaviors that are being given to new faculty and staff.

I’m not making this up. This isn’t a spoof or a hoax. You can visit the official University of Wisconsin website and see this for yourself.

Here’s an actual list of things that according to the University of Wisconsin are racist;

– Asking someone where they are from or where they were born.

– Telling someone they speak good English.

– Telling someone that you have several black friends.

– Saying that you’re not a racist.

– Complimenting an Asian person by telling them they are very articulate.

– Asking an Asian person for help with science or math.

– Uttering the phrase “There is only one race, the human race.”

– Saying that you think America is a melting pot and that when you look at someone you don’t see race.

– Believing that the most qualified person, regardless of race, should get the job.

– Thinking that every person, regardless of race, can succeed in society if they work hard enough.

– Telling a black person who is being too loud to be quiet.

– Telling an Asian or Latino person who is too quiet to speak up.

– Mistaking a person of color for a staff member when you’re in a store.

– Calling something “gay”.

– Doing an impression of someone’s dialect or accent.

University of Wisconsin (Stevens Point) told the College Fix that the words and behaviors are not banned per se, but acknowledged that this list is being used in faculty and staff training courses.

The list is also very similar to one being used for faculty training at the University of California and other colleges across the country.

So there you have it, you’re a racist. And don’t try and deny the fact that you’re a racist because, as the list above illustrates, that only proves you’re a racist.

See the full list below.

http://www.infowars.com/are-you-a-racist/ - 95k -

Comment by Raymond K Hessel
2015-07-02 18:43:58

China tanking, again. How long before they have unrest from all the pissed-off bagholders?


Comment by Professor Bear
2015-07-02 19:08:31

Oil set for the next leg down?

Comment by Professor Bear
2015-07-02 19:10:44

Markets Commodities Oil Markets
Oil Falters After Rig Count Grows
U.S. oil producers added 12 rigs last week, after 29 weeks of cuts
Traffic slowly moves along the 110 Freeway in downtown Los Angeles. U.S. oil stocks unexpectedly rose this week despite it being the summer driving season when Americans take to the roads increasing gasoline consumption, which usually draws on supplies. Photo: Associated Press
By Timothy Puko
Updated July 2, 2015 4:47 p.m. ET

The amount of rigs drilling for oil in the U.S. rose for the first time in seven months, triggering a slump in crude oil prices to their lowest settlement in two months.

U.S. oil producers added 12 rigs last week, breaking 29 straight weeks of cuts, in response to prices that have rebound to- and stayed at $60 a barrel since late April. That convinced producers to end months of massive cutbacks that started after the U.S. shale drilling boom flooded the market and sent prices crashing.

But the increase in rigs is scaring investors and analysts who have warned that oil could be on the verge of another sharp fall. Production has kept making small gains even as drilling has declined and stockpiles have hit historic levels around the world. If rigs get back to work, that could keep the market flooded with oil, a concern that built strong momentum this week.

On Wednesday, the U.S. benchmark price broke below a $4 range it had traded in for two months. That jolt came after the U.S. Energy Information Administration reported domestic oil stockpiles unexpectedly rose for the first time in nine weeks.

Those drilling-rig cuts have slowed dramatically in recent weeks, and last week’s increase is a sign the market may stay oversupplied and head for a “replay” of the past year’s steep fall in prices, said John Kilduff, founding partner of Again Capital in New York, which invests in energy commodities.

“It seems to be a definitive break in the trend and it’s definitely registering in the market,” he added. “The rig count’s going up, but the production, after all the past cuts, isn’t going down either. This is a week of very bearish news for the oil market.”

Comment by Professor Bear
2015-07-02 23:24:38

Markets | Fri Jul 3, 2015 12:47am EDT
Oil prices drop on rising U.S. rig count, China stock market probe
SINGAPORE | By Henning Gloystein and and Keith Wallis
Motorists queue for fuel at a fuel station in Jakarta March 30, 2012.
Reuters/Enny Nuraheni

Oil prices dropped on Friday as a rising U.S. rig count stoked fears of oversupply and after Chinese regulators opened an investigation into suspected stock market manipulation.

Front-month U.S. crude futures CLc1 were trading at $56.70 per barrel at 0439 GMT, down 23 cents from their last settlement.

That means U.S. crude has fallen from a price range of $57-62 per barrel that it had been in since early May.

Brent crude futures LCOc1 were down 14 cents at $61.93 per barrel. But the contract remained in a downward trend that has been in place since early May and which has seen prices fall almost 10 percent.

“Negative sentiment stemmed from an increased U.S. oil rig count (by 12 to 640), after dropping for six months. U.S. shale producers have brought down the breakeven cost from $35 to $20 per barrel,” ANZ bank said on Friday.

“The current U.S. horizontal and vertical rig count across the Permian, Eagle Ford, Bakken and Niobrara shale plays implies that U.S. oil production growth will reach 135,000 barrels per day year-on-year by 4Q15,” Goldman Sachs said on Friday.

The rising U.S. rig count adds to near record production by OPEC and Russia.

“The market decided to focus on the economy and the old story about the oil glut (in trading on Friday),” said Jonathan Barratt, chief investment officer at Sydney’s Ayers Alliance.

“Summer drive time (in the United States) is not as strong, the rig count is up, (and) shale output is not translating into real demand as it should be,” Barratt said.

“With oil prices at these levels the concern is people are have not stopped producing.” The Greek economic and debt crisis and worries over China’s commodities markets also weighed on investor sentiment, Barratt said.

He expected oil prices to move lower next week and could retest April’s lows.

Traders said that Asia’s commodity markets were also impacted by reports that China’s regulators had opened an investigation into suspected market manipulation after a slump of more than 20 percent in Chinese stocks since mid-June.

Comment by Raymond K Hessel
2015-07-02 19:28:02

Will China be the first central-banker blown Ponzi market to crash hard? It certainly won’t be the only one.


Comment by Raymond K Hessel
2015-07-02 19:33:51

The Chinese government, having encouraged retail investor bagholders to gamble in China’s Ponzi equity markets, will now have to reckon with “investor” fury as China’s asset bubbles start to burst and millions of small “investors” get their heads handed to them in a preview of what’s going to happen to the fools who bought into Wall Street’s rigged casino.


Analysts warned that the nation’s leadership would pay dearly if it failed to stabilise the market and prevent millions of small investors from losing their life saAnalysts warned that the nation’s leadership would pay dearly if it failed to stabilise the market and prevent millions of small investors from losing their life savings.

Comment by Raymond K Hessel
2015-07-02 19:39:51

Shanghai Composite down 6.20%! ROTFLMAO! Pop goes the bubble. Wait until their housing bubble starts imploding as well.


Comment by Raymond K Hessel
2015-07-02 19:46:49

Millions of Chinese “investors” have shifted from greed to panic mode tonight as their markets have crashed almost 7%. You would have to have a heart of stone not to read about these “investors” who borrowed heavily on margin accounts to play the casino markets, and are now getting their heads handed to them, without laughing. Coming soon to a Ponzi market and housing bubble near you.


Comment by Professor Bear
2015-07-02 23:29:14

The other cool part is that the Chinese government is pulling out all the stops to prop up the stock market, apparently to no avail.

Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king’s horses and all the king’s men
Couldn’t put Humpty together again.

Comment by Professor Bear
2015-07-02 23:38:11

Tea Leaf Nation
Chinese Stock Investors Seek a Savior, or a Scapegoat
If Shanghai’s stock index is a proxy for national strength and pride, what happens when it plunges?
By David Wertime
July 2, 2015

Chinese stocks are hurtling back toward earth, and the public fallout is fast getting ugly. After a dizzying ascent that saw the benchmark Shanghai Composite Index rocket from 2,185 on August 1, 2014, to 5,166 on June 12, it has since surrendered 24 percent of its value, wiping out more than $2.4 trillion in wealth in the grisly process. That’s bad news for China’s mom-and-pop investors, or xiao san, who had flooded the market in recent months, especially those who used borrowed money. It’s also bad news for the Chinese government, which now faces a simultaneous hit to the national bottom line and to Communist Party credibility, much of which is staked on stable economic development. Perhaps inevitably, the search has begun for someone else to blame.

During the market rally and the recent pain that has ensued, the government has utilized not only monetary and fiscal policy, but also its outsized voice in state media in an attempt to steady the market. Recently, little in its vast toolbox seems to have worked. On Saturday, June 27, the day following a vertigo-inducing 7.4 percent tumble in the Shanghai Index, the Central Bank announced cuts to interest rates and, the same day, said it would reduce the amount of capital banks were required to keep on hand, which would allow banks to pump more money into the financial system. In the announcement’s wake, four major publications focusing on the markets proclaimed a continuing bull market. The Securities Times wrote that the market was primed for a “slow bull” over the rest of 2015, echoing claims in a March article series in state mouthpiece People’s Daily that predicted a “slow bull,” one eventually “expected to challenge 4,000.” What read then as an optimistic prediction had come, by mid-2015, to look like a floor that the government would backstop.

But on Monday, June 29, the Shanghai Index took another tumble. That evening, the Chinese treasury announced that it would consider allowing pension funds to invest directly in the market. Such funds collectively hold about $460 billion — the influx of some of that capital could raise, or at least stabilize, faltering stock prices. The next day, June 30, was the best for Chinese stocks in weeks. That evening, Bai Yansong, a respected political commenter who anchors a television show called News 1+1 for state-run China Central Television, remonstrated those looking to state-run pensions to act as “a great savior, coming in waves like the People’s Liberation Army.” Bai pointed out the law allowing pensions to invest was only a draft; in passing, he noted that June 30 had been a good day, “with aunties in trading halls everywhere singing the national anthem,” invoking a (possibly apocryphal) report that had appeared online the day before. Bai’s comment was meant as a cautionary tale, although images of smiling, middle-aged women singing patriotically in front of backlit stock boards seemed to gain more media traction than his admonitions.

The flip side of the implication that those who invest love China is that those who sell or gainsay the market do not. About the same time that Bai was trying to reason with his viewers, a rambling article packed with invective and bereft of evidence went viral on massive mobile platform WeChat, accusing the United States Federal Reserve of orchestrating the recent swoon by jiggering U.S. interest rates to keep capital in U.S. equities, instead of flowing into China. The presence of wealthy funders, the author wrote, was like well-positioned fighters on a “battlefield.” If China could attract more risk capital into domestic stock markets, “Chinese production would move up the value chain, swallowing American industry and allowing us to stomp on America’s corpse.”

Also on June 30, state-run digital magazine the Paper shared a tongue-in-cheek cartoon that repurposed old Communist propaganda showing a woman and child wishing Chinese soldiers well as they return from battle. In the remixed images, the troops are marked with the names of state-run financial institutions like China International Capital Corp. and Central Huijin. “During the days you were gone,” the woman tells the soldiers, “the foreign devils harmed the villagers greatly.” A July 2 article in online portal Sina Finance called “Someone Is Maliciously Shorting A-Shares” invoked U.S. financier George Soros’ short sales of Malaysian ringgit during the 1997 Asian financial crisis, drawing a parallel between those short sales and the Chinese stock market’s current plight. Online rumors have fingered Goldman Sachs for short selling in the Chinese market too.

Social tensions are growing as China’s retail investors, once so eager to enter the market, seem to have lost a bit of their collective nerve. July 1 began with a loss of over 5 percent; the morning of July 2, shortly after stocks opened even worse, a woman leaped to her death in a Shanghai shopping mall. A Chinese-language report (warning: graphic images) wrote that while the reason for her suicide was not immediately clear, “morning markets were diving to 3,911” when she took her life. Online outlet China News reported that another woman in her 30s lost about $640,000 in recent gyrations and now “trembles” at the mere mention of the word “stock.”

Because some investors expected — or hoped — that the government would act as a shield against massive losses, the recent swoon ultimately hits at the state’s credibility. After the close of trading on Friday, July 2, the market had fallen below 4,000, the floor that the government had once implicitly vouchsafed. That evening, with recent government measures foundering, state agency Xinhua published an open letter from a group of five finance professors complaining about the drop, which it called a “near disaster.” It found the failure of state-driven efforts to stabilize the markets “inexplicable.” Among other factors, the letter blamed experts, reporters, and bloviators for “irresponsibly” bad-mouthing Chinese stocks. It warned darkly that the market fall was not only damaging to middle-class aspirants, but to Chinese society and the China dream — “and cannot be taken lightly.”

Comment by Raymond K Hessel
Comment by Ben Jones
2015-07-02 20:02:50

Man, that blood splatters far and wide. Don’t look if you get queasy.

Kung Pao crow Dan, it’ll make it go down easier.

Comment by Professor Bear
2015-07-02 23:32:44

April 11, 2013
How to Eat Crow, by Chef Melissa Perfit

Photograph by Elizabeth Renstrom for Bloomberg Businessweek

So you’re just going to give me a crow? I’d probably slit its throat, hang it by its feet to get the blood out. Then chop off the head and feet, they’re probably really poky and talony. I suppose you’d pluck it. You don’t want to eat its feathers.

The meaty part of a crow is its breast meat. Butcher that, set it aside. We’re going to use the other part of the bird for crow stock. Gotta use the whole animal. Put the crow bones and the wings on a sheet tray and roast them at 400 degrees until they get nice and brown and crispy. Put them in a pot, cover them with water. Add yellow onions with skins, celery, carrots, and thyme. You let that simmer for probably eight hours. Crow stock: done.

Season the crow breasts with salt and pepper, and sear them in a hot pan with canola oil. Just until they’re browned, not cooked through. And by the way, crow breasts are tiny, so this would be quite a few crows that we’re using, or else we’d have to make the smallest batch of gumbo ever. You’ll need a whole murder of crows.

Comment by Professor Bear
2015-07-02 23:41:00

The crash in the Chinese stock market is not due to an unsustainable 100% increase over one year’s time, fueled by margin lending to a massive influx of mom-and-pop investors.

Rather it’s due to those who are irresponsibly bad mouthing the Chinese stock market. If everyone would stop saying mean things about the market, it could start going back up again.

Comment by Professor Bear
2015-07-02 23:51:28

Here’s a polite comment:

That Chinese stock market is on quite a roll!

Comment by Professor Bear
2015-07-02 23:53:08

China stocks down 5% volatile trade; rest of Asia down
See Kit Tang
7 Mins Ago

Mainland stocks extended their dramatic selloff on Friday, with the Shanghai Composite index losing as much as 7 percent earlier in the session.

Elsewhere in the region, downbeat sentiment prevailed following a soft U.S. jobs report and as Greece’s Sunday referendum loomed.

Greek Prime Minister Alexis Tsipras has been urging his country to reject the bailout in a “no” vote that could accelerate the country’s exit from the euro zone. The only full survey to be released since the referendum was announced on Saturday showed the “no” vote ahead, but falling sharply after the announcement that banks in Greece would be shut.

Overnight, U.S. major indexes stepped slightly into negative territory after mixed jobs data dampened the U.S. economic outlook. The Dow Jones Industrial Average shed 0.16 percent, while the S&P 500 and the Nasdaq Composite finished nearly flat.

Comment by Professor Bear
2015-07-02 23:59:21

Panic and superstition seem to have taken hold in the minds of Chinese stock market investors trying to explain the massive losses they have incurred.

It couldn’t possibly be the case that these people are reaping the logical consequences of making REALLY STOOPID investments!?

Comment by Professor Bear
2015-07-03 00:00:29

As China stocks sink, some accuse Morgan Stanley, other foreign forces
Published: July 3, 2015 1:04 a.m. ET
By Laura He
Asia markets reporter

HONG KONG (MarketWatch) — The recent, drastic stock-market meltdown in China seems to have freaked out the country’s government and central bank, as their repeated efforts to stabilize the markets have failed, at least so far.

And now, some segments of Chinese society are now raising the possibility that “evil” market forces going short to ruin the economy, and even suspecting investment “predators” of lurking behind the turmoil, with Morgan Stanley (MS, -0.91%) among the names mentioned.

Mainland China’s benchmark Shanghai Composite Index (SHCOMP, -4.81%) had plunged more than 24% from its June 12 peak as of Thursday’s close, despite a raft of stimulative measures by authorities, including rate cuts, reduction in stock-transaction fees, and an easing of margin rules.

At the same time, China’s stock regulators said Friday they would look into possible “market manipulation” helping fuel the move lower.

Against this backdrop, the Financial News, a newspaper run by the People’s Bank of China, said in an editorial Friday that predatory forces were playing up the risks for the Chinese markets, specifically mentioning Morgan Stanley for having withdrawn a previously bullish forecast for the Shanghai Composite Index after a sharp drop for the benchmark on June 26.

The newspaper cited Morgan Stanley as suggesting that the Shanghai Composite may have topped out at the beginning of June, and it accused the U.S. investment bank or either making “a malicious remark carelessly” or harboring “ulterior motives.”

The editorial also said other banks which had similarly soured on Chinese equities were seeking to “go short on China on purpose and disturb China’s economic reforms.”

Similarly, five professors from China’s top universities issued a widely distributed public letter Thursday, alleging sinister market forces were exploiting weaknesses in China’s financial system for profit, comparing the situation to when financier George Soros and others bet against East Asian currencies during the 1997-98 Asia Financial Crisis.

The professors also urged authorities to closely monitor the stock transactions of large investors and slash the stamp duty by half in order to stabilize the markets and avoid any potential social turmoil.

Comment by phony scandals
2015-07-03 05:50:12

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Comment by TBoom
2015-07-03 08:54:19

Comment by phony scandals
2015-07-03 05:50:12

They Want To Use ‘Hate Speech Laws’ To Destroy Freedom Of Speech In America
By Michael Snyder, on July 2nd, 2015

Comment by Mafia Blocks
2015-07-03 11:43:52


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