China is Kaput

I mentioned months ago that China was in a dire situation with their inflated Real Estate bubble. And the recent tarifs idiocy has crashed their stock market and the US Markets as well. People who think that tarifs are a good thing to bring bac jobs are clueless as these job will be low wages and it will take years to build and initiate these investments if they ever do.

It’s all a scam to put more disguises taxes on the consumers, because the corporations are so greedy, they will pass on the tarifs to the former.

The Chian stock markets haved crashed with stock hitting their limit down short circuit with the wave of sellers and no buyers in sight. I also warned that this situation could happen where there is no bid as ETF Fund Managers are forced to liquidate the underlying stocks in the Fund. It’s a double whammy!

China was hopping their internal consumers demand would be able to handle the blow, but stores and restaurants are deserted and shopping malls empty.

Realized this: In China buying real estate is a multi generation investment nad is not cheep. So now not only the Real Estate is on th cusp of melting down, but the stock markets crashed, because of the crazy tarifs war initiated by the U.S.

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If maintained, this absurd tarifs decision would bring more inflation in the U.S. as well, because producers will just pass on the trafis to consumers.
https://www.marketwatch.com/story/cell-phones-clothes-tvs-toys-this-is-all-the-stuff-the-u-s-buys-from-china-68c84faf?mod=home_lead

In the U.S. the Fed have installed trading desk near the major stock exchanges years ago and that is probably why the U.S. Markets did not hit their limit down, but don’t be fooled by this the ETF forced liquidation and no bid catastrophic failure is also an issue for the Western worlds as most retail investors money has been put in these index ETF.

For now things appear to have stabilized a bit as the U.S. has put on hold the tarifs crazyness, because the world Financial markets were about to go in total cascade catastrophic failure.

A portential short term rebound coud happen, but the recent events have scared a lot of people and it would mostly be short speculators (CTA, Hedge Fund, Options trades and momentum traders) that would jump in this early.

Financial markets don’t like instability and these bad trafis decisions is generating a lot of uncertainty and unstability.

And with the Sovereignt debt load around thr world even Bonds are not doing well.

So far Year to date.