johnthebear

A Meltdown in Emerging Markets?

As the world goes into recession, China will be hurt in a big way. Many banks have huge proportion of under performing real estate loans and property prices are highly inflated. Think about the speculation... China Oil is down 70% since last October.

After the games, I expect FXI to drop to less than $100, perhaps as low as $70. This estimate is based on a comparison of the decline of the NASDAQ in 2000 and the shape of the curve going up and down for both indexes. Plot both on a 10 year chart along with the other emerging markets and it becomes clearer the direction things are headed. Not knowable how far down anything can go.

Did you see that in the Lehman markdowns in their recent earnings report that they anticipate a 28% decline in property values in Europe? When values triple in 10 years, it makes sense and becomes comparable to CA in what might happen. How can China grow when their markets are shrinking?

A Meltdown in Emerging Markets?

Chip on shoulder is out of place Mr. Chen. Stick to the facts.

Where Are the Chinese Stock-Market Riots?

Did you hear that China Oil which had an initial public offering last November and instantly became the largest capitalized company in the world has now lost 70% of it's value?

They are going to sell $8.7 Billion in bonds to increase working capital! They are required to sell gas and oil below cost by the government. This will probably be passed on to consumers, then you might see riots like we are beginning to see here and in England. Truckers in England pay $9/gal for fuel.

The problem is OPEC,

VERY PLAIN, VERY SIMPLE.

THOSE THAT CONTOL THE OIL CONTROLS THE WORLDS ECONOMIC FUTURE,

AND THEY ARE NOW TRYING TO BANKRUPT THE WORLDS LARGE BANKS SO THAT THEY CAN GAIN POLITICAL POWER AND POWER FOR I-SLUM.

EVEN SUPER POWERS LIKE CHINA, INDIA AND BRAZIL CAN BE HURT IN THE COMING "GREATER" DEPRESSION.

The Power of the Market: 600 Million People in China Lifted Out of Poverty Since 1981

So what do the blacks in US think about poverty? Depends, liberal or conservative!

Liberals can never be happy, conservatives look around and count their blessings.

Obama will try to convince conservative blacks that things have never been worse. Let us pray that truth will be exposed to the light of day, and that pandering in the black churches will end with some dramatic moves by the IRS... before, not after the elections!

Kind of makes you wonder how they measure poverty in China?