Shanghai Stock Exchange Now Down 50% From Its High, but DOW Only Down 10% … Are US Stocks *REALLY* That Much Better Managed? …

Posted: April 25, 2008 in Your Money
Tags: , ,

” The Shanghai Composite briefly fell below the key psychological level of 3,000 yesterday, down 50pc from its peak. “
  1. canuck99 says:

    … or is the DOW *INDEX* being “managed” — not the companies themselfves? … 50% drop from top of the Shanghai Stock Exchange (SSE) Index *so far* (it’s still dropping)… And this is a strong economy (i.e. no debt) … But the DOW is still up around 12,800 — not even 10% off from its peak and the US is in debt up to its eyeballs. What’s up with that? Answer: Two things: Market Intervention (a.k.a. the Plunge Protection Team) and massive monetary inflation. Bernanke is trying to create stagflation like the 70s to avoid a depression like the 30s, but the both the US Dollar and US government both had much more respect (and trust) in the eyes of international lenders in 1970 than they do now (i.e. they no longer think they’re going to get their money back), so Bernanke’s stagflation goal has an excellent chance of becoming hyperinflation.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s