Hmmm....interesting comments by the regulator from China seem to be being "shut-down"....
I decided to watch this video of a round table event at the Davos economic summit, and it must be noted that this forum occurred many days before the latest market correction. (hopefully just a correction)
But the only one on the panel that is a regulator is a guy from China, who seems to have a slightly different perspective from others...not that any of them are just blindly optimistic....not at all, they all speak wisely as folks who admit to have NOT seen prior crisis....but the regulator speaks as if it is almost a foregone conclusion that there will be a future issue.
Now, to be clear....IMHO, some of this discussion poorly differentiates a normal economic cycle from the sort of melt-down that was seen in the last crisis in 2007, or the .COM crisis in 2000....or even the depression of 1929....and no one talks about being "insulated" from either of those.....but if you look at the discussion that occurs at the 50 minute point of this video where the regulator tries to point out (on a graph) the dangers he sees with the level of the stock market PE....you will see what looks to me to be almost a concerted effort by a number of the others to "shut down" the discussion.
Also....the regulator seems to later indicate that it is the regulators "job" to make sure these PE levels are "tempered"...and this discussion is of course "shut down"......I don't know if this is because this is a sort of "dirty secret" that markets are manipulated.....or just that this is NOT how we do it, and the danger may in fact be "real".....
Either way....very interesting meeting / discussion.....
Please go to minute 50 of this video and comment on what you think about the Chinese regulator and whether my thoughts of the conversation being "shut down" are on point or being overly sensitive.
But the only one on the panel that is a regulator is a guy from China, who seems to have a slightly different perspective from others...not that any of them are just blindly optimistic....not at all, they all speak wisely as folks who admit to have NOT seen prior crisis....but the regulator speaks as if it is almost a foregone conclusion that there will be a future issue.
Now, to be clear....IMHO, some of this discussion poorly differentiates a normal economic cycle from the sort of melt-down that was seen in the last crisis in 2007, or the .COM crisis in 2000....or even the depression of 1929....and no one talks about being "insulated" from either of those.....but if you look at the discussion that occurs at the 50 minute point of this video where the regulator tries to point out (on a graph) the dangers he sees with the level of the stock market PE....you will see what looks to me to be almost a concerted effort by a number of the others to "shut down" the discussion.
Also....the regulator seems to later indicate that it is the regulators "job" to make sure these PE levels are "tempered"...and this discussion is of course "shut down"......I don't know if this is because this is a sort of "dirty secret" that markets are manipulated.....or just that this is NOT how we do it, and the danger may in fact be "real".....
Either way....very interesting meeting / discussion.....
Please go to minute 50 of this video and comment on what you think about the Chinese regulator and whether my thoughts of the conversation being "shut down" are on point or being overly sensitive.
posted by Bigqueue at 2:32 AM
1 Comments:
I am also intrigued by the comments that the regulator makes about knowing there is a grey rino in the room (big debt problem that will show it's head) and that the central government will use tools and speed never seen before to "save" the situation......and with tools that other governments don't have at their disposal.....this makes me wonder if they might simply "nationalize" whole industries.....which of course makes me think of the danger of having Chinese investments. (but of course, he did not say that specifically.....but what other tools does a communist government have over democratic governments?)
This comment was toward the end of the video....very close to the end.
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