WE HAVE BEEN TELLING YOU AND TELLING YOU…..
First we said for nine months sell sell sell OUT of Asia. China faced with quality price laws environment and so many factors has had LEAKAGE for years where 5% of its business went to Indonesia – to Vietnam – 10% to India – 5% to Asian neighbors where its easier cheaper and just better to DO BUSINESS. Now as 25% of China’s business is gone forever and never ever coming back, a run on the bank is commencing. Trading partners, buyers of manufacturing, goods and services closing, leaving and just bowing out as they can’t make a profit in closed controlled utterly manipulated COMMUNIST system. They are GONE. All those dollars. Never to return. China is facing a HARD LANDING. It will take DECADES to recover. Riots and civil unrest with massive lay offs’ and job declines to follow.
Consider the first FOUR DAYS of Global Market opening is the worst four day market opening EVER. Thats EVER. Over all of history. EVER. How much has been lost in hours. 2.2 TRILLION is gone in smoke folks.
That 2.2 trillion just go up by itself. IT creates MARGIN CALLS on Debt – it creates cascade niagara ripple effects – as everyone has to sell to losses their stocks and bonds to cover their margin calls. Commodity speculators are WIPED OFF THE FACE of the map.
We are weeks away in the US from firms like SWIFT if they fail to renew financial obligations going BK. As the first of these large energy giants go BK the ripple to all the losers that backed them cascades to the market.
China with a CONTROLLED economy and market – dumping untold billions to support its market and its currency is loosing so much money – they are HOVER BOARDING rather than running backwards. But trillions are now betting against them. The currency will devalue agains the wishes of its controllers. Its already happening in off shore spreads – and their is no end in sight today.
China is toast and trillions of investors have learned the hard way. China is not the West and now they pay for that error in thinking. One policy mis step after another and China lost the confidence of investor markets banks hedge funds private equity all over the planet all at one pin point 2016.
Overpriced markets at higher than 16/1 PE ratios have and are adjusting. Thursday there were FIVE BILLION Shares traded 50% up in volume. This means share sellers are NOT EXHAUSTED YET – the smart money does not wish to hold stock that keeps going down = not Amazon – not Face book not all of them that lost this week and keep on loosing including Apple. There is no relief. Unless you say EXXON lost less than the others. Temporarily.
It is too early to see if PANIC and a SUPER CRASH are around this corner yet. We can say for sure this wakes up all markets and everyone is paying attention. While there is not panic there is controlled sell of going on and there is not an end anytime soon. Turbulence is going to rule the election year and long term stock buying – thats 2017 not 2016. Wait for the bottom folks.
Meanwhile entrepreneurs – focus on your business sector and as Cramer Said today – NEWSFLASH WORLD we all don’t live in COMMUNIST CHINA – get a grip.
Chairman CEO SPACE— January 8, 2016