“Pretty interesting commentary from Marc Faber in this Bloomberg video, considering he is usually a mega Asian bull. While his terminology for a recession is different than what is commonly used (two quarters of negative GDP growth) we saw what even a mild slowdown in China did post 2008 Olympics spending spree. If this comes to bear, the impact on the commodity market would be of course enormous as China is the world’s marginal buyer of everything, dominating some markets to the tune of 50% of all global purchases. Ironically lower commodity prices would be helpful to the strained U.S. consumer, but I don’t think the stock market would be looking that far ahead. Anyhow, just one man’s opinion but someone I enjoy listening to. His indicators of why he is seeing bubble activity on the ground in China are also quite interesting.
As for the Chinese market? It’s not acting well at all lately.”
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OMG CHINA has a Freaking Bubble that can be seen from Outer Space, its not bubbling…its a monster. Yes, going back to the 2008 Olympics was my source to follow China after I was long commodities in 2008 believing the “Peak Oil, Copper, etc” people,that bubble popped after its of their Oct Holiday season ended and the thing collapsed on itself when that surge in expected demand failed. So far the India/China Iron Ore spot is rolling with not much demand for restocking pre Monsoon..Copper starts to roll and then gets a pop, (probably from all the heavy longs in the trade)…China may up rates or something on Monday…that sell off into the close on the Shanghai Comp is normally a tale tell sign of a leak, plus China loves to release stuff when we or they are off..and with USA and UK closed on Monday I can see them liking to either up Gas Prices, RRR or interest rates to try and slow stuff soon.
ok I didn’t proofread..the sell off on the Shanghai Comp was Fridays close. And take out the words “of their” before holiday…
You are pretty knowledgeable about overseas markets.
I think another rate hike is coming for China.
Certainly there is a property bubble and they are trying to slow that down desperately./.
The main problem is the fine line between stimulus and taming inflation….you can do your best, but something always goes haywire…