Thursday, March 01, 2007

Black Tuesday and getting Shanghai'd by the Dubo ji.

Ok, I don't know much about economics, but this stock market crash -- sorry, "correction" -- in Shanghai on Tuesday sort of has me worried. Don't we owe the Chinese a lot of money, I mean a lot of money? The fact that they sneazed and the whole world panicked is kind of scary., isn;t it? Am I the only one who get's worried when the Chinese have more to do with my econonomic well-being than our own government does?

In this brave new world of globalization, it looks like several million Chinese suddenly losing their life savings in the crazy slot machine they call a market send a lot of us out to sleep on subway grates. If it turns out the Yuan is really monopoly money, what happens to the dollar? I don't know about you but, I'm not comfortable with the idea that some little old Chinese lady's investment strategy of throwing the I Ching at a stock listing could lead to me dinning out at a soup kitchen every night.

It seems to me all the analysis I've seen and heard doesn't to get around to the fact that China is pretty much in the same situation the US was in during the "Roaring Twenties." Back then the US was the world's biggest loaner and everyone was getting rich, on paper at least, speculating like there was no tomorrow and "playing the market." Then came Black Tuesday.
What really worries me is that none of these so called experts on TV want to go there. Their obfuscation is showing, me thinks.

I saw this James Angel character on Tuesday night's NewsHour and he explained what happened in Shanghai like this:

"Remember how Wile E. Coyote would run over the cliff, and then suddenly it drops. Well, the markets have gone up so high, so fast in China that suddenly people have gone, 'Wait a minute, maybe it's gone a little too far,' and they're rushing for the exit."

Is this guy a Jim Angle at Georgetown or is he the Angel on the Rockford Files who's always on the grift? When these supossed "experts" are invoking Wile E. Coyte to calm everyone down, you know it's a lot worse than they're letting on.

I'm worried, how about you?


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