It has been nearly one year since the global outbreak of Newcastle Pneumonia (CCP), and the vaccine is still not under control. The economy has been in the doldrums for a long Time, and the only way for major central banks to save the market is to continue printing silver paper, and asset bubbles are commonplace. However, the world is “business is slow”, the only way to make money is to speculate on stocks with a “gambling” mentality, and the government has deliberately “let the stock market fly”, in order to whitewash the wealth effect. Such a “bubble to feed the bubble”, it is the absurdity of the world, history has shown that will end with a financial crisis of the century, beware of winning sugar loss factory!
Although in March last year, the Federal Reserve Board decisively offered an unlimited amount of water to stabilize the financial markets, but at first thought to be a short-lived unconventional measures, with the Epidemic is not under control, the new U.S. government intends to push another 1.9 trillion U.S. dollars to stimulate the economic program, such a sky-high deficit and liabilities, how to smoothly pack is difficult to imagine.
Although the U.S. economy is poor, but the U.S. stock market has reached new heights, all because of the flood of market liquidity, funds are rushing to the stock market for Gold, see the United States and even the global retail participation in the stock market soared in many places, stock boy, shell companies, long-losing enterprises are all hot speculation, more rare retail investors can repel the large short positions, the situation is worrying.
Since the world’s largest economy is such, other major economies to maintain financial stability, only to follow in step. China is facing weak external demand, internal demand is no longer good enough to fully compensate for the gap, the stock market bubble is no less than the U.S. stock market, the authorities acquiesce to the stock market rise, with the opening of the financial market, as well as to maintain a stable and strong exchange rate of the RMB, to fight for foreign capital inflows, to hold the economy. The problem is that the stock market bubble is creating another big bomb that threatens the financial system.
Hong Kong stocks have been lagging behind the mainland stock market in terms of valuation, and now they have become a concentration of Chinese technology stocks listed, carrying the burden of financial strategy. Since the beginning of the year, it has attracted a large influx of water from the north, stimulating Hong Kong stock trading and index performance, somewhat like “draining” the mainland stock market. On the other hand, many Hong Kong people have reduced their income or even lost their jobs, and those who still have some money in hand are venturing into the stock market to speculate, but seek to earn tea money to maintain their livelihood. Even though the stock market participants are aware that this is a game of asset bubbles, but the market is really too bad, business is difficult, wage earners hand stop mouth stop, bank deposit interest and nearly zero, instead of sitting back and watching the depreciation of silver paper, it is better to enter the market, this mentality is not difficult to understand.
In the end, this “debt to feed the debt”, “bubble to feed the bubble” of the alarming crisis how to close the section? Now all parties are expecting asset bubbles in exchange for time, until the epidemic dissipates, the economy rebounded with a vengeance, leading to corporate earnings performance, stock market valuations can become rationalized since. The most afraid of this dream again failed, artificial “bull market” is like a castle built on the sand, sooner or later to collapse, then the world economy will eventually have to come to a complete break, to be able to re-establish!
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