Just a week ago, here is what world financial analysts said
about the economic collapse in China .
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Daily Mail, London
China's tumbling stock markets plunged even further today, intensifying
fears the country was tail-spinning towards the biggest financial disaster
since the 1929 Wall Street
crash.
Almost $3trillion (£2trn) – more than the entire economic output of Brazil – has
been wiped out since markets went into reverse just a few weeks ago, posing a
bigger headache for many global investors than even the Greek debt crisis.
China's government, regulators and financial institutions are now waging a
concerted campaign to prop up the nation's stock markets – a move that
failed spectacularly in the 1929 crash that triggered the Great Depression.
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Here is what the
experts said just three days later.
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The
China ’s battered stocks
rebound as officials tighten market controls
Government takes desperate measures to shore up market,
while feared internal security police announce they have begun investigating
investors accused of ‘maliciously’ shorting blue-chip shares, as bubble bursts.
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The Washington Post
In the
latest in a series of desperate measures to shore up the market, regulators
banned major shareholders, corporate executives and directors from selling
stakes in listed companies for the next six months.
Officials
also announced that banks could roll over loans backed by shares.
But, for
some investors, it was the entry of the feared Public Security Bureau (PSB)
that really changed sentiment.
The
powerful internal security police announced they had begun an investigation
into a dozen individuals and institutions accused of “maliciously” shorting blue-chip
shares.
The state news agency
Xinhua said the move showed regulators would “punch” anyone who violates
regulations and the law “with a strong fist.”
But if
those moves calmed some of the panic in the markets, it was far too early to
declare victory, analysts said.
In the course of a couple of days the stock market
experts had declared the worst financial depression since the Great depression
of 1929 would befall China .
A couple of days later the strong and
immediate reaction of the Chinese government to the market manipulation had
driven out the devils and restored the market completely, recovering the $3.2
trillion within days.
The instantaneous action by the Chinese stock regulators
and Chinese government left financial experts bewildered, prognosticators
stunned, and crooked financial manipulators running for the border. It seems odd that none of these tactics were
employed by our government during the 2009 American financial collapse.
For comparison purposes, the loss of wealth to American
households in the 2009 recession totaled an astounding $14 trillion, and the worldwide
loss was $34.4 trillion. Clearly the
screams of "depression" by the economic experts about China 's $3.2 trillion
in lost value, which was erased in a matter of hours, were either efforts to
further drive down the Chinese market value, were the result of algorithms gone
mad, or were deliberate lies to undermine the Chinese market.
Our little recession of 2009 cost Americans more than
four times as much money as the temporary Chinese drop. We are still trying to recover from 2009 six
years later. China did it in about 48
hours. Six years later no one is in jail
for causing the 2009 crash while the Chinese are preparing to prosecute brokers
within a few hours and in China
they take corruption and stealing from the public seriously.
It seems as if our financial experts are worthless when it comes to
knowing the Chinese market as the latest flurry of lies and scare tactics
demonstrate. This swift and decisive action
in China should tell us we
continue to depend on a corrupt financial system here in America that is
immune from government threats and prosecution.
There are a few things the Chinese can teach us about
managing the parasites on Wall Street and their protectors in Congress.
.