Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Paul Kern who wrote (81965)	5/19/2007 8:07:48 PM
From: orkrious	Read Replies (2) \| Respond to of 110194

# # China tightens policy again - using every available avenue -- trotsky, 14:32:05 05/18/07 Fri and what happens? everybody just YAWNS. "Crash unlikely as China moves to curb stock bubble" reports Reuters, breathlessly. reuters.com 'the government won't let anything bad happen to us' this is a perfect replica of the sentiment in 1873 and 1929 - back then, the strong belief in the respective stock market bubble's invincibility rested on exactly the same argument - 'the government (treasury sec. in 1873, Fed in '29) won't let it happen'. of course, the government is in reality 100% incapable of stopping a bear market once it begins. there is also, w.r.t. China's market, no chance whatsoever of engineering a 'controlled decline'. either the govt.'s measures are completely ignored once again, or a decline begins that gets out of hand right away. there is imo no 'middle ground' to be had. when Saudi Arabia's market was faced with one hike too many, the belief that the decline could be stopped also was widespread. Prince Whatshisname has already suffered a 50% haircut for his trouble in trying to do so. right now, their index is down 80% from its 2006 high, and still in a downtrend (although it may well bounce now - could be a double bottom).