– The Latest Thing In China: Brokers Refusing Sell Orders (ZeroHedge, July 10, 2015):
Just think of it as brokers doing you a favor: do you really want to be arrested for “malicious” selling?
Several friends in China have told me that brokers have refused their sell orders.
— Patrick Chovanec (@prchovanec) July 10, 2015
So why even bother with the pretense of “markets”, and not only in China, but in Japan, Europe, Switzerland, the US and everywhere else where central banks have directly injected $22 trillion in artificial liquidity in the past 7 years to keep the illusion afloat?
@markets when you have the State creating money to buy stocks and enacting draconian measures against selling, it’s not a market anymore.
— Rudolf E. Havenstein (@RudyHavenstein) July 10, 2015
Think of how much more productive the economy will be if central banks assure that markets will close higher by 1% every day in perpetuity. Consider the amount of free time Wall Street’s brilliant “financial engineers” will have to allocate to socially useful activities for once.
This is serious stuff.
The entire western economy has leaned on China to pull us out of the economic malaise we have suffered since 2008…..
Now, it is obvious China is even worse off than we are because their leadership is totally corrupt….A lot of US corporations are going to get badly stung.
This is going to affect the US, European & Japanese markets…..This site has been covering this problem, but few want to face what is upon us.
Allowing people to put up their houses to buy stock creates a bubble unlike any I have ever seen. That (if possible) creates more empty air than Mortgage Backed Securities…..but, that is what China has allowed. The bubble is broken.
Now outlawing any open market activities…..how stupid is that? That will generate a panic unlike anything we have seen in our lifetimes.
The bubble has broken, its effects will be felt all over the world.
Add in the mess in the Euro…….?
The debt level in the US……..?
I don’t see anything good coming out of this…….