In China, the music just ended.

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In China, the music just ended.

Postby Indaswamp » Thu Mar 20, 2014 9:42 am

Why does this matter? Because this will severely affect the world economy adversely. The US is not insulated from the fall out.
One of the primary drivers of the real estate bubble in the past several years, particularly in the ultra-luxury segment, were megawealthy Chinese buyers, seeking to park their cash into the safety of offshore real estate where it was deemed inaccessible to mainland regulators and overseers, tracking just where the Chinese record credit bubble would end up. Some, such as us, called it "hot money laundering", and together with foreclosure stuffing and institutional flipping (of rental units and otherwise), we said this was the third leg of the recent US housing bubble. However, while the impact of Chinese buying in the US has been tangible, it has paled in comparison with the epic Chinese buying frenzy in other offshore metropolitan centers like London and Hong Kong. This is understandable: after all as Chuck Prince famously said in 2007, just before the first US mega-bubble burst, "as long as the music is playing, you've got to get up and dance."

http://www.zerohedge.com/news/2014-03-19/music-just-ended-wealthy-chinese-are-liquidating-offshore-luxury-homes-scramble-cash

And this: China's Minsky moment...
http://www.zerohedge.com/news/2014-03-20/dropping-flies-largest-steel-maker-chinas-shanxi-province-defaults-cny-3-billion-deb

Chinese Yuan is collapsing, affecting Derivative bets tied to Carry trade bets world wide.
http://www.zerohedge.com/news/2014-03-19/chinese-yuan-collapsing
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Re: In China, the music just ended.

Postby dudejcb » Thu Mar 20, 2014 8:32 pm

So, if memory still intact, back when our bubble burst there were some who took the short an made out, again, like bandit when the bottom fell out.

Who do you suppose saw this coming and then made bets to win based on others' losses this time?
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Re: In China, the music just ended.

Postby cartervj » Thu Mar 20, 2014 9:11 pm

Soros has been known to make millions by shorting countries.
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Re: In China, the music just ended.

Postby boney fingers » Fri Mar 21, 2014 5:33 am

dudejcb wrote:So, if memory still intact, back when our bubble burst there were some who took the short an made out, again, like bandit when the bottom fell out.

Who do you suppose saw this coming and then made bets to win based on others' losses this time?


It is usually the people who scream the loudest that nothing is wrong and that we are on a sustainable path.
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Re: In China, the music just ended.

Postby Indaswamp » Fri Mar 21, 2014 7:54 am

dudejcb wrote:So, if memory still intact, back when our bubble burst there were some who took the short an made out, again, like bandit when the bottom fell out.

Who do you suppose saw this coming and then made bets to win based on others' losses this time?

Being that it's china, my guess is the Chinese government.
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Re: In China, the music just ended.

Postby SpinnerMan » Fri Mar 21, 2014 8:44 am

dudejcb wrote:So, if memory still intact, back when our bubble burst there were some who took the short an made out, again, like bandit when the bottom fell out.

Who do you suppose saw this coming and then made bets to win based on others' losses this time?

Smart people that understand reality and are willing to risk their money. Who do you think saw this coming and profited?

boney fingers wrote:It is usually the people who scream the loudest that nothing is wrong and that we are on a sustainable path.

I disagree. It's the people that quietly go about their business that are smart, see the world as it is, and willing to take the risk of being wrong on occasion. Granted those like you describe get most of the attention, but they are the exception.
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