I’m going to short the Chinese stock indexes, but I’m still working out the best way to do that. Anyone have ideas, do please post them.
Bottom line: when a stock market moves from 1100 to 5000 in a couple of years, and the banks of that nation own BILLIONS of subprime loans (which are defaulting at rates above 15%) a stock market crash is inevitable. It is only a matter of WHEN.
One must keep in mind that inside China right now almost NOBODY has heard of “subprime” or has any idea Chinese banks are up to their ears in owning subprime backed securities. It could take months before Chinese investors get wise to that. Obviously the government censors are hard at work keeping this topic MUM.
