Chinese stock market crash; has the bubble finally burst?

[Valmy]

I thought you were stockpiling funds to get bargain basement prices?

[Monoriu]

I thought you were stockpiling funds to get bargain basement prices?

When you said grand strategy, I thought you meant my retirement plans.  Despite my stock holdings, I do want the market to crash to that I can buy more.  The next pay day is coming up and I need to do something instead of sitting in savings earning 0.01%. 

[jimmy olsen]

The Chinese have announced 7% growth, right in line with government projections.

How... convenient.

http://www.theguardian.com/business/2015/jul/15/china-surprises-economists-with-gdp-rise-of-7

[Monoriu]

The Chinese leadership seems to have realised that there is a lack of consumers to buy goods made in China.  There is only so much that the Americans are willing to buy.  The quest is to find new customers.  They believe that people in central Asia and the middle east can buy more Chinese goods, but the lack of infrastructure is undermining business opportunities.  The solution is to set up the Asian Infrastructure Investment Bank to fund infrastructure developments in these countries, so that they can buy more Chinese goods.  When this is done, China can set up more factories and hire more workers, and growth will pick up again. 

[Tonitrus]

Eventually, they're gonna have to market to the Alpha Centaurans. 

[Richard Hakluyt]

There is a huge middle-income trap there, there are simply not enough consumers in the world to boost China and its 1.35bn people to high-income status. China needs to make domestic consumption a priority imo.

[Eddie Teach]

After a solid seven to eight years predicting DOOM here, I'm confident that that DOOM is finally here! Yay!?

Canadian real estate prices will quickly follow.

[Monoriu]

There is a huge middle-income trap there, there are simply not enough consumers in the world to boost China and its 1.35bn people to high-income status. China needs to make domestic consumption a priority imo.

The communist leadership recognise the need for increased domestic consumption, and they have said so publicly.  It is difficult though as nobody seems to have great ideas on how to achieve that.  Part of the problem is the lack of social safety nets that necessitates private savings to guard against rainy days.  Part of it is the severe penalties of not being able to repay loans.  More fundamental is how to increase the wages of the general population without giving them political rights. 

[Valmy]

This all sounds familiar to the problems crushing Tsarist Russia 100 years ago.

So long as China avoids disastrous wars about damn fool things in the Balkans they might succeed where the Russians failed.

[derspiess]

The communist leadership recognise the need for increased domestic consumption, and they have said so publicly.  It is difficult though as nobody seems to have great ideas on how to achieve that. 

Very simple-- EAT MORE

Worked for us

[Ideologue]

There is a huge middle-income trap there, there are simply not enough consumers in the world to boost China and its 1.35bn people to high-income status. China needs to make domestic consumption a priority imo.

The communist leadership recognise the need for increased domestic consumption, and they have said so publicly.  It is difficult though as nobody seems to have great ideas on how to achieve that.  Part of the problem is the lack of social safety nets that necessitates private savings to guard against rainy days.  Part of it is the severe penalties of not being able to repay loans.  More fundamental is how to increase the wages of the general population without giving them political rights.

Seems easy enough.  Pay them more without giving them political rights.  In fact, enforcing labor laws, as our own right is fond of saying, limits the scope of one's rights.

[The Minsky Moment]

There is a huge middle-income trap there, there are simply not enough consumers in the world to boost China and its 1.35bn people to high-income status. China needs to make domestic consumption a priority imo.

The communist leadership recognise the need for increased domestic consumption, and they have said so publicly.  It is difficult though as nobody seems to have great ideas on how to achieve that.  Part of the problem is the lack of social safety nets that necessitates private savings to guard against rainy days.  Part of it is the severe penalties of not being able to repay loans.  More fundamental is how to increase the wages of the general population without giving them political rights.

The elephant in the room is the inconvenient fact that no country has transitioned to an affluent mass consumer society while retaining monopolized political power.

[Ideologue]

If only Gorbachev had deployed the tanks.

[Monoriu]

The elephant in the room is the inconvenient fact that no country has transitioned to an affluent mass consumer society while retaining monopolized political power.

Singapore is the model that they are after.  But Singapore actually has democracy and largely independent courts. 

[MadImmortalMan]

The elephant in the room is the inconvenient fact that no country has transitioned to an affluent mass consumer society while retaining monopolized political power.

Singapore is the model that they are after.  But Singapore actually has democracy and largely independent courts.

And Singapore is a tiny island, while China is an enormous landmass encompassing tons of diverse territory, historical cultures and logistical challenges.