China Facing Economic, Financial And Stock Market Crash Scenario

The Market Oracle ^ | 12-18-2009 | Mike Shedlock

[blam]

China Facing Economic, Financial And Stock Market Crash Scenario

Economics / Financial Crash
Dec 18, 2009 - 03:38 AM

By: Mike Shedlock

Problems in China continue to mount. Money supply is growing rampantly out of control, property prices are in a bubble, exports are weak, commodity speculation is pervasive, and GDP growth is more of a mirage than real.

Money Supply Growing Record 29.74%

Please consider China Monthly New Loans Are 294.8 Billion Yuan, Above Forecast

New local-currency loans totaled 294.8 billion yuan ($43.2 billion), compared with 253 billion yuan in October, according to data released by the People’s Bank of China on its Web site today. The median forecast of 19 economists in a Bloomberg News survey was 250 billion yuan.

M2, the broadest measure of money supply, rose a record 29.74 percent in November from a year earlier.

China’s banking regulator plans to slow new lending to between 7 trillion yuan and 8 trillion yuan next year, a person familiar with the matter said this week. China is trying to ensure that there is enough credit to support an economic recovery without increased risks of bad loans and asset bubbles.

“We believe slower credit growth in 2010 will be key to avoid a boom-bust scenario in the economy,” Wang Tao, a Beijing-based economist for UBS AG, said in a report.

[snip]

The Asian markets closed mostly down last night. See here.

[blam]

Blindfolded On A Cliff Edge (China's market bubble is on the edge of bursting)

[2banana]

Before getting into to the relationship between copper and pork products, I want to draw your attention to what makes me nervous, have a look at these photos from China. They are excerpted from a China Central Television Channel (CCTV) program documenting private speculation and hoarding of metals throughout the country. According to an associate of mine at an Asia-focused hedge fund who was just in China, “It’s pervasive; people are piling this stuff up in their backyards.”

Why am I thinking Tulips????

[FromLori]

UPDATE 1-China c.banker: harder for govts to buy U.S. Treasuries

* Deputy Chinese c.bank governor says dollar to keep falling

http://www.reuters.com/article/idUSTOE5BG08U20091217

[FromLori]

Not my post but I think you may want to look through it

[CharlesWayneCT]

I was thinking, it would be nice if there was a new category for these types of ‘news stories’, which are certainly “in the news” as they are published by someone, but are hardly “news” in the sense that they are reporting something that has happened.

That way, we won’t miss the story if and when any of the dire predictions actually happens and a real news outlet reports something.

Karl Denninger, the Market Oracle, and other soothsayers would all be put in this new category, may “fortune-teller”.