Tuesday, August 25, 2015

China downturn related links

David Beckworth at Macro and other Market musings. Like Michael Pettis he too talks of 'impossible trinity'. A short version of Pettis at FT Alphaville.
John Maudlin on the role of US Federal Reserve: "...I want to show you how the current market meltdown is being brought to you courtesy of your friendly US Federal Reserve Bank"
Paul Craig Roberts and Dave Kranzler Central Banks have become a corrupting force: "If central banks purchase stocks in order to support equity prices, what is the point of having a stock market? The central bank’s ability to create money to support stock prices negates the price discovery function of the stock market."
Steve Keen Is this the great crash of China?: "So China is having its first fully-fledged capitalist crisis. To date its response to it has been to try to sustain the unsustainable: to transfer the bubble from housing to the stockmarket, and to keep the stockmarket rising like some production target for wheat from the bad old days before the fall of the Gang of Four. It can’t be done. At some point, the Chinese government is going to have to make the transition from generating a credit bubble to trying to contain its aftermath."
Steve Keen China Crash: You can't keep accelerating forever


chavakiran said...

What will be in it for India?

gaddeswarup said...

My guess, not much. Overall it seems bad for china but may nor affect the rest of the world too much except counties like Australia whose economy is too ties to China.