|
hypnorotic posted:Aren't they just printing currency to buy up stocks to keep the price up? Does it really "cost" anything when the central bank does this? I really don't know much about the consequences of this action, could you explain further? I'm going to assume if it would increase inflation and devalue their currency, correct? The Renminbi isn't a reserve currency and Beijing has tried to keep it stable ie they still won't allow it to free float, which means something has to give. Most likely there is going to be a long term drain on reserves. Ardennes fucked around with this message at 23:34 on Jul 27, 2015 |
#
?
Jul 27, 2015 23:31
|
|
|
|
| # ? May 12, 2024 19:27 |
|
|
Uncle Jam posted:Oh I am sure some people could do it but I would bust out almost immediately, I suck at that poo poo. Oh, I misunderstood your point. Yeah I'd be real real hesitant in this sort of volatile, about to be more volatile environment.
|
|
#
?
Jul 27, 2015 23:45
|
|
|
What are the prospects for this affecting, or not affecting, other parts of the world?
|
|
#
?
Jul 28, 2015 00:41
|
|
|
The US and other developed countries don't really sell that much to China besides a few high-value capital goods. For all the Chinese government's talk of switching the economy to domestic consumption Japan has been trying and failing to do that for 25 years now, and China is even more hosed up than they were. It would take decades to make such a switch in full and they don't have decades But the end result is that a Chinese crash would have not all that much impact on the US beyond the initial stock price shocks. If anything it might even be positve because it would cause energy and commodity prices to crater icantfindaname fucked around with this message at 01:20 on Jul 28, 2015 |
|
#
?
Jul 28, 2015 01:17
|
|
|
icantfindaname posted:The US and other developed countries don't really sell that much to China besides a few high-value capital goods. For all the Chinese government's talk of switching the economy to domestic consumption Japan has been trying and failing to do that for 25 years now, and China is even more hosed up than they were. It would take decades to make such a switch in full and they don't have decades Why has Japan failed to transition to domestic consumption?
|
|
#
?
Jul 28, 2015 03:19
|
|
|
Anime.
|
|
#
?
Jul 28, 2015 03:21
|
|
|
EngineerJoe posted:Yeah seriously, shorting is actually a good thing for a healthy market. Naked shorting is a whole different beast though. Even ignoring that, the key term is "healthy market"
|
|
#
?
Jul 28, 2015 03:24
|
|
|
ToxicAcne posted:Why has Japan failed to transition to domestic consumption? They are all too busy working every waking hour to actually go consume.
|
|
#
?
Jul 28, 2015 03:28
|
|
|
Cultural Imperial posted:
Oh my god it IS the bubble chart.
|
|
#
?
Jul 28, 2015 04:04
|
|
|
ToxicAcne posted:Why has Japan failed to transition to domestic consumption? Even more simplified: inertia.
|
|
#
?
Jul 28, 2015 04:13
|
|
|
ToxicAcne posted:Why has Japan failed to transition to domestic consumption? Herbivore men
|
|
#
?
Jul 28, 2015 04:27
|
|
|
Are there untried pie-in-the-sky measures for something like that? Like a small basic.income coupled with steep import tariffs and mandatory workday reductions? "You WILL take time off, you WILL buy domestic and you WILL have more sex; here's some money. Get to it!"
|
|
#
?
Jul 28, 2015 06:12
|
|
|
I know mandatory workday reduction has at least been talked about. If I'm remembering right there were a couple companies that did it on their own but it ended up the management made the workers come in for as many hours as before, they just turned into unpaid overtime.
|
|
#
?
Jul 28, 2015 06:14
|
|
|
Accretionist posted:Are there untried pie-in-the-sky measures for something like that? Like a small basic.income coupled with steep import tariffs and mandatory workday reductions? They could fix it anytime they want (well, until the demographic decline hits. china has a few more decades at least) , but doing it would require upending literally the entire political-economic status quo in both Japan and China. And given that, as mentioned, Japan has been facing down this problem for literally almost 30 years and has done almost nothing about it even while having at least a semi-functional liberal democracy and rule of law, you should be able to tell how well China will manage it icantfindaname fucked around with this message at 06:23 on Jul 28, 2015 |
|
#
?
Jul 28, 2015 06:20
|
|
|
I bet the marriage poo poo is a big issue in China. Because real estate was so lucrative, China encouraged this idea that to get married you must buy a car and an apartment first. Which is funny since Chinese people will say this is tradition but private ownership wasn't even legal until like, 1997? Anyway the apartments especially are now absurdly expensive and there are whole segments of society who cannot get married because they can't afford an apartment. The rest have to scrimp and save up every spare yuan to do it, which can't help domestic consumption. Chinese people already save so much that piling on more reasons to save isn't a good idea.
|
|
#
?
Jul 28, 2015 06:25
|
|
|
That's why the government recently promoted the idea that you need to have an iPhone to have sex. The consumption economy is beginning
|
|
#
?
Jul 28, 2015 07:35
|
|
|
Grand Fromage posted:I bet the marriage poo poo is a big issue in China.
|
|
#
?
Jul 28, 2015 07:59
|
|
|
I remember walking passed the Apple store in Bangkok, and there was a couple buses full of Chinese tourists unloading and going straight into the store and tour groups taking group pictures all holding up their new iphones in front of the store. Are consumer electronics like that cheaper outside of China enough to warrant that kind of weirdness, or are Thai iphones just cooler?
|
|
#
?
Jul 28, 2015 08:02
|
|
|
Sheng-ji Yang posted:I remember walking passed the Apple store in Bangkok, and there was a couple buses full of Chinese tourists unloading and going straight into the store and tour groups taking group pictures all holding up their new iphones in front of the store. Are consumer electronics like that cheaper outside of China enough to warrant that kind of weirdness, or are Thai iphones just cooler? The Thai one is probably for better insurance that their new phones weren't fake knockoffs.
|
|
#
?
Jul 28, 2015 08:06
|
|
|
Dux Supremus posted:This is from 2012, but yeah, it's a problem. 
|
|
#
?
Jul 28, 2015 09:09
|
|
|
Fojar38 posted:The Thai one is probably for better insurance that their new phones weren't fake knockoffs. That and electronics are hugely marked up here. My guess is it is significantly cheaper. And taking pictures of yourself for no apparent reason isn't anything weird in Asia.
|
|
#
?
Jul 28, 2015 10:07
|
|
|
Poil posted:Your link doesn't work, the site won't allow reading without paying. The Stopscript extension is your friend. just put the website as untrusted and read away.
|
|
#
?
Jul 28, 2015 10:27
|
|
|
Alternately, just hit stop while it's loading and it'll never load the paywall. 
|
|
#
?
Jul 28, 2015 10:51
|
|
|
Sheng-ji Yang posted:I remember walking passed the Apple store in Bangkok, and there was a couple buses full of Chinese tourists unloading and going straight into the store and tour groups taking group pictures all holding up their new iphones in front of the store. Are consumer electronics like that cheaper outside of China enough to warrant that kind of weirdness, or are Thai iphones just cooler? Iphones cost at least twice as much in China as they do in other countries such as the US and Thailand. This is due to high luxury taxes on things like electronics and cars. In China how much you pay for a Honda will easily be enough to buy a BMW in the US. Has nothing to do with warranty or wither or not something is fake.
|
|
#
?
Jul 28, 2015 11:08
|
|
|
TheBalor posted:Because what goes up must eventually go down? Let's assume the prices are wildly overinflated, but China has enough money to buy it all up. What then? You suddenly have trillions in stock that is worth a fraction of what you paid for it.As soon as the government starts to unload it, the process will start again. That's why people say they're trying to hold back the tide: short of eternally finding more suckers to buy in for higher and higher prices, prices have to recede from the absurd highs. Nah, you buy it and then burn the paper. Pooof. All gone. But no investor loses money because they are paid in full. The goverment does not unload anything.
|
|
#
?
Jul 28, 2015 12:11
|
|
|
mastervj posted:Nah, you buy it and then burn the paper. Pooof. All gone. But no investor loses money because they are paid in full. The goverment does not unload anything. What happens to a company's value when its stock literally disappears into thin air?
|
|
#
?
Jul 28, 2015 12:18
|
|
|
Claverjoe posted:The Stopscript extension is your friend. just put the website as untrusted and read away. Dux Supremus posted:Alternately, just hit stop while it's loading and it'll never load the paywall.  Thank you both. The link was  And also quite insane.  Apparently single women is a problem as well. http://foreignpolicy.com/2012/04/23/the-startling-plight-of-chinas-leftover-ladies/
|
|
#
?
Jul 28, 2015 12:27
|
|
|
GlassEye-Boy posted:Iphones cost at least twice as much in China as they do in other countries such as the US and Thailand. This is due to high luxury taxes on things like electronics and cars. In China how much you pay for a Honda will easily be enough to buy a BMW in the US. Has nothing to do with warranty or wither or not something is fake. Funny thing is that if you buy a luxury or sports car in the US (high end BMW, any Rover, Bentley, and Lotus) they will do a credit check and verification of source of income even if you are paying cash. That's because it is a thing for Chinese businesspeople to hire a straw purchaser and ship the car back to China to avoid the luxury tax. Even with the shipping and agent costs this is still something like 1/4 the price of buying it in China.
|
|
#
?
Jul 28, 2015 13:18
|
|
|
Would it be cheaper to just let the crash happen and then bail everyone out after instead of propping it up?
|
|
#
?
Jul 28, 2015 13:20
|
|
|
TheBalor posted:What happens to a company's value when its stock literally disappears into thin air? The company just has to host another "Initial" Public Offering...with Chinese characteristics.
|
|
#
?
Jul 28, 2015 13:42
|
|
|
Jose posted:Would it be cheaper to just let the crash happen and then bail everyone out after instead of propping it up? Depends what the cost is in blood if the crash leads to widespread disillusionment in the Party. And I don't mean an immediate mobs with pitchforks reaction but the Party would no doubt fear that anything that undermines their success story for China may be heaping fuel onto the bonfire of popular dissatisfaction with their rule. Xi dada doesn't want to lose the Mandate of Heaven.
|
|
#
?
Jul 28, 2015 13:53
|
|
|
Jose posted:Would it be cheaper to just let the crash happen and then bail everyone out after instead of propping it up?
|
|
#
?
Jul 28, 2015 15:33
|
|
|
Dux Supremus posted:This is from 2012, but yeah, it's a problem. quote:The distinction between "average" and "mediocre" is one that has been ticking on the Chinese national psyche, as indicated by one of the questions on last year’s gaokao, China’s notorious college entrance exam: lol
|
|
#
?
Jul 28, 2015 15:48
|
|
|
Wow Chinese people are birds. That explains a fair bit.quote:For men, however, bigger is always better. Zhang recalls visiting villages in China that were bedizened with a "phantom third story." This type of construction refers to a two-story house with an unfurnished, unfinished third story built to make the house appear more grandiose from the outside. The trend has taken off in neighborhoods where the competition for a wife is particularly fierce; in some areas, it has become mainstream to the extent that matchmakers won’t schedule an appointment with a man’s family unless his house has the requisite phantom floor. Especially the squat toilets.
|
|
#
?
Jul 28, 2015 16:14
|
|
|
Shifty Pony posted:Funny thing is that if you buy a luxury or sports car in the US (high end BMW, any Rover, Bentley, and Lotus) they will do a credit check and verification of source of income even if you are paying cash. That's because it is a thing for Chinese businesspeople to hire a straw purchaser and ship the car back to China to avoid the luxury tax. Even with the shipping and agent costs this is still something like 1/4 the price of buying it in China.
|
|
#
?
Jul 28, 2015 16:26
|
|
|
Inferior Third Season posted:Why would an auto dealer care if a buyer tries to evade Chinese taxes? Yeah I'm going to bet it has way more to do with weeding out/discouraging people with illegal income streams (ie. drugs) rather than Chinese tax law...
|
|
#
?
Jul 28, 2015 16:47
|
|
|
How about a mandate from the manufacturer to the USA dealers so they don't under cut their dealers in China?
|
|
#
?
Jul 28, 2015 17:09
|
|
|
TheBuilder posted:How about a mandate from the manufacturer to the USA dealers so they don't under cut their dealers in China? Canadians have the same problem buying cars in the US, for much the same reason.
|
|
#
?
Jul 28, 2015 17:10
|
|
|
They don't want to piss off their Chinese dealers. The taxes are also used by the automakers to hide higher margins and like hell they aren't going to crack down on someone exploiting that.
|
|
#
?
Jul 28, 2015 18:22
|
|
|
|
| # ? May 12, 2024 19:27 |
|
|
Inferior Third Season posted:Why would an auto dealer care if a buyer tries to evade Chinese taxes? Because they don't want to have investigators coming around thinking they might be seeking out money laundering type business.
|
|
#
?
Jul 28, 2015 20:38
|
|