OT: China announces $586 billion economic stimulus plan

[TheBreeze]

[quote=Running Bear]Thebreeze,

I don’t think FXI will be as great a buy as you think. China is in big trouble and they are going to go through some very rough times ahead. I think the better bet is wait for the pop we get off of this news and then buy FXP instead.

My2Cents[/quote]

You’re going ultra-short China at these levels? Do you expect China to collapse?

[Running Bear]

I don’t expect China to collapse. But they will have some serious pain ahead. The economy is based on exports and they are seeing their major buyers of their exports pulling back rapidly. They are already seeing lots of businesses and factories go under and people being out of work and we are just beginning to pull back here and in Europe. This time next year you will get a much better idea of how bad it will be for them. Playing a bounce on China is a fine for the day trade or short term. But the long term direction is still down.

You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents

[Running Bear]

I don’t expect China to collapse. But they will have some serious pain ahead. The economy is based on exports and they are seeing their major buyers of their exports pulling back rapidly. They are already seeing lots of businesses and factories go under and people being out of work and we are just beginning to pull back here and in Europe. This time next year you will get a much better idea of how bad it will be for them. Playing a bounce on China is a fine for the day trade or short term. But the long term direction is still down.

You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents

[Running Bear]

I don’t expect China to collapse. But they will have some serious pain ahead. The economy is based on exports and they are seeing their major buyers of their exports pulling back rapidly. They are already seeing lots of businesses and factories go under and people being out of work and we are just beginning to pull back here and in Europe. This time next year you will get a much better idea of how bad it will be for them. Playing a bounce on China is a fine for the day trade or short term. But the long term direction is still down.

You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents

[Running Bear]

I don’t expect China to collapse. But they will have some serious pain ahead. The economy is based on exports and they are seeing their major buyers of their exports pulling back rapidly. They are already seeing lots of businesses and factories go under and people being out of work and we are just beginning to pull back here and in Europe. This time next year you will get a much better idea of how bad it will be for them. Playing a bounce on China is a fine for the day trade or short term. But the long term direction is still down.

You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents

[Running Bear]

I don’t expect China to collapse. But they will have some serious pain ahead. The economy is based on exports and they are seeing their major buyers of their exports pulling back rapidly. They are already seeing lots of businesses and factories go under and people being out of work and we are just beginning to pull back here and in Europe. This time next year you will get a much better idea of how bad it will be for them. Playing a bounce on China is a fine for the day trade or short term. But the long term direction is still down.

You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents

[TheBreeze]

[quote=Running Bear]
You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents[/quote]

You got that right. FXP was down 25% on Friday.

[TheBreeze]

[quote=Running Bear]
You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents[/quote]

You got that right. FXP was down 25% on Friday.

[TheBreeze]

[quote=Running Bear]
You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents[/quote]

You got that right. FXP was down 25% on Friday.

[TheBreeze]

[quote=Running Bear]
You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents[/quote]

You got that right. FXP was down 25% on Friday.

[TheBreeze]

[quote=Running Bear]
You need to take my opinion with a grain of salt however because I think going long any equity market longer then to play market swings is a fool’s game. All of the equity markets for the next year will be heading south but with very violent bear market rallies to wipe out slow and weak shorts.

My2Cents[/quote]

You got that right. FXP was down 25% on Friday.

[Running Bear]

TheBreeze,

Here are a few stories about what I am talking about.

http://news.bbc.co.uk/2/hi/asia-pacific/7713594.stm

http://www.chinadaily.com.cn/bizchina/2008-10/14/content_7104848.htm

http://www.chinadaily.com.cn/bizchina/2008-10/21/content_7124388.htm

http://www.usatoday.com/money/world/2008-10-21-red-dragon-china-factories-economy_N.htm?loc=interstitialskip

[Running Bear]

TheBreeze,

Here are a few stories about what I am talking about.

http://news.bbc.co.uk/2/hi/asia-pacific/7713594.stm

http://www.chinadaily.com.cn/bizchina/2008-10/14/content_7104848.htm

http://www.chinadaily.com.cn/bizchina/2008-10/21/content_7124388.htm

http://www.usatoday.com/money/world/2008-10-21-red-dragon-china-factories-economy_N.htm?loc=interstitialskip

[Running Bear]

TheBreeze,

Here are a few stories about what I am talking about.

http://news.bbc.co.uk/2/hi/asia-pacific/7713594.stm

http://www.chinadaily.com.cn/bizchina/2008-10/14/content_7104848.htm

http://www.chinadaily.com.cn/bizchina/2008-10/21/content_7124388.htm

http://www.usatoday.com/money/world/2008-10-21-red-dragon-china-factories-economy_N.htm?loc=interstitialskip

[Running Bear]

TheBreeze,

Here are a few stories about what I am talking about.

http://news.bbc.co.uk/2/hi/asia-pacific/7713594.stm

http://www.chinadaily.com.cn/bizchina/2008-10/14/content_7104848.htm

http://www.chinadaily.com.cn/bizchina/2008-10/21/content_7124388.htm

http://www.usatoday.com/money/world/2008-10-21-red-dragon-china-factories-economy_N.htm?loc=interstitialskip

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