Meanwhile in China....

stator

cells wrote: »

did they got one of those -0.5% BOE trackers so have no mortgage to service and are below 65 so don't yet receive a pension?

No, in many cases they were repossessed as the rent didn't cover the mortgage on their high LTV BTL.

Generali

http://www.bloomberg.com/news/articles/2015-07-17/chinese-bazooka-xi-readies-483-billion-to-end-stock-selloff

So what do you do? Would you take the other side of the trade the Chinese Government is taking? The Chinese Government has 1/6th of the value of the market on hand to stop a massively overpriced market from falling.

I'd be inclined to hang on and sell out to the Government later but soon.

Amazing stuff.

padington

Generali wrote: »

http://www.bloomberg.com/news/articles/2015-07-17/chinese-bazooka-xi-readies-483-billion-to-end-stock-selloff

So what do you do? Would you take the other side of the trade the Chinese Government is taking? The Chinese Government has 1/6th of the value of the market on hand to stop a massively overpriced market from falling.

I'd be inclined to hang on and sell out to the Government later but soon.

Amazing stuff.

That's a lot of money that might need a safehaven one day ...

Generali

padington wrote: »

That's a lot of money that might need a safehaven one day ...

The Chinese love a good bit of Aussie & especially Sydney property.

michaels

Is this just the next step after standing behind banks?!

Aren't there rumours that some dodgy govt money was channeled into DOW on black Friday to engineer a bounce when there were no other buyers. I know a lot more nudge than this but the same principle or lack of. No doubt the Marxists would have a suitable comentary.

Generali

michaels wrote: »

Is this just the next step after standing behind banks?!

Aren't there rumours that some dodgy govt money was channeled into DOW on black Friday to engineer a bounce when there were no other buyers.

The Chinese markets have gone a long way past rumours in US markets. More than half the shares in the market can't be bought or sold: if you are holding those shares you have no idea of their value and you can't sell them. This apparently is completely reasonable: you can buy a traded asset in the secondary market which is suddenly declared unsellable for no obvious reason.

michaels wrote: »

I know a lot more nudge than this but the same principle or lack of. No doubt the Marxists would have a suitable comentary.

Well presumably this is money being spent by the ruling classes to maintain their hegemony over the middle classes. The rulers need to maintain the perceived asset value of the middle classes in order to keep them from joining the proletariat, rising up and smashing the system.

All history is class war, remember that Comrade.

Stalin would have just shipped anyone holding a short position off to Siberia.

Lenin would have declared any sellers at all to be couter-revolutionaries and had them shot.

Mao would have allowed anyone to sell if they wanted but a year later rounded them up and stuck them into labour camps.

Pol Pot would have just killed everyone because he could: brokers, buyers, sellers, cleaners, catering staff. All done for.

All things considered, p155ing a load of taxpayers money away on shares is a whole lot better than some of the alternatives.

cells

What are the chances that some powerful individuals took the same bet of an ever increasing stock market only to find it is now crashing. To save their personal fortunes (or to expand it) they are now using the states cash to effectively help themselves?

Generali

The roller coaster is going back down again:

http://www.bloomberg.com/news/articles/2015-07-27/chinese-stock-index-futures-drop-before-industrial-profits

padington

Generali wrote: »

The Chinese love a good bit of Aussie & especially Sydney property.

Wouldn't it make more sense for China to invest in a country less dependent on a stable Chinese economy right now ?

Generali

padington wrote: »

Wouldn't it make more sense for China to invest in a country less dependent on a solvent and growing Chinese economy right now ?

I'd argue that if you want to invest in Aus and avoid correlation with China, Sydney is a good a place to be as any. Local mining, such as it is, mostly goes to making electricity