They start to notice that they hold a bunch of worthless paper. So they will diversify to another set of worthless class of paper: stock certificate.
China Creating Company to Invest a Portion of Its $1 Trillion in Reserves
Started by
Mtrader
, Mar 09 2007 06:17 PM
1 reply to this topic
#1
Mtrader
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Posted 09 March 2007 - 06:17 PM
You are on your own. This is for demonstration only.
JV
JV
#2
Trend-Shifter
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Posted 10 March 2007 - 10:45 PM
They start to notice that they hold a bunch of worthless paper. So they will diversify to another set of worthless class of paper: stock certificate.
I didn't see any interest in your post. Myself I think this is one of the most significant changes in the economic landscape to come. It could change the stock market just like it changed the treasury market.
The Chinese are under pressure to float the Yuan and they need avenues to keep the currency weak. They need a mechanism to dispose of the dollars without making the Yuan strengthen or the dollar get weaker.
This may create the next stock market bubble. It could keep the market propped up even if economic fundamentals do not support it. Your retirement dividends could be zip if you aren't in early as share prices would rise. It could be like the housing bubble, only those in early will benefit.
Only in geometry can a line go into infinity.
