from Wolf Street:
The Chinese stock-market mania has created $6.5 trillion in “value” over the last 12 months. For perspective, that “value” amounts to 63% of China’s 2014 GDP of $10.4 trillion. No other stock market has ever accomplished that much in such a short time. Mainland Chinese have borrowed $348 billion on margin, according to Bloomberg. They want to fire up “value” creation. Everyone is doing it. People are opening new accounts as if there were no tomorrow. And yet, the economy is heading for a hard landing.
Hard-landing gurus have been predicting it for years, and have been frustrated for as long, because there was no hard landing, or even a soft landing, or any landing. China’s economy had turned into a miracle, flying at high altitude, powered by monetary and credit propellants, a construction boom, phenomenal build-out of overcapacity, and strong global demand for its goods.
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