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7/28/2015 0 Comments China's stock policy looks shaky China has experienced another down day after the market had its second worst trading day about a month ago. This will cause a look into the Chinese Governments conviction to stop the markets decline and uphold the market rhetoric is has used a few weeks back. While market forces should be left to their own devices, the fact that the government started to intervene put alot of pressure on them to uphold their pledges. This thinking could be the link to a dropping stock market and an exacerbated drop in the economy.
While there is some evidence of market drops slowing an economy, the real cause of recessions is when there is debt involved in the asset prices in decline. By allowing brokerage account to increase margin, lowering rates, and increasing liquidity to the margin lenders, the Chinese government has, through intervention, linked the overall stock market to the overall economy. This is the time for China to make a decision to break away from the support of 'free market forces' or to closer tie the performance of the economy to the stock market.
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7/21/2015 0 Comments Tue, Jul 21, 2015A look into why the yen should weaken further.
http://seekingalpha.com/article/3341045-the-yen-and-the-monetization-of-debt |
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