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Posted

Stocks in the U.S. are vastly overvalued due to the availability of cheap credit. I expect a severe market correction at some point.

 

Not sure what's going on in China.

Posted

 

I don't listen to AJ but watch schiff channel. It is true what he says around 15 mins. All the cheap goods are made in china and if china crashes the west will be affected.

Posted

The Chinese have done the same thing as the western world did on start of the dotcom era.

Taking loans to buy shares, expecting the shares to rise faster than the interest on the loans.

That bubble is now bursting, just like the dotcom bubble bursted.

Posted

This situation was created by the government attempting to dump money into vehicles for capital financing as well as the addiction of a poorly educated investor class to government fueled bubble money. The government is scared to death that they cannot maintain a 7% growth rate and that the people will see that government controlled economic stability is a sham. This is why they must control the banking sector and continue to force them to make loans despite the fact that the banks are already weighed down by bad loans.

 

If you look at the Shanghai stock market, it is way overvalued compared to earnings and the volume of trades exceeds most of the world combined. Not a good sign of a healthy market.

Posted

One thing very few people are talking about is that many international investment firms are banned from selling Chinese stocks. With the decline margin calls are sure to go out. At some point they'll have to sell something to meet margin requirements... Something like US stocks... :D 

Posted

Welp! http://finance.yahoo.com/news/trading-halted-york-stock-exchange-154021341.html

 

Silver is only up .7% on the day, after dropping seven times as much the day before. The markets are rigged.

 

 

I have been trying to find the source at their website but have been unable to;

 

http://www.realityzone.com/currentperiod.html

 

Freedom Force International has known for some time now that there are institutions that are printing silver certificates "backed" by silver, in order to keep the silver down. They have been printing certificates at such an inflationary rate, that other institutions that deal in actual silver have begun to collaborate to get all institutions to raise their silver reserve ratio. If the ratio were raised high enough, certificate companies would suddenly find themselves bankrupt, and silver would explode.

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Posted

Steve Keen predicted the Chinese crash with the Minsky software model. There must be some truth to the post Keynesian method. He also predicted the housing bubble. I think a synthesis is in order.

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