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Online Share Trading

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Why is everybody so bullish!!

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john_1
Super Contributor
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37 REPLIES 37
Not applicable
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Not applicable
Yip ! I ask my self the same Question
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Shard
Super Contributor
The Chinese bailout has fueled Asian markets. Chinese economy reliant on resources, these should be the only shares that people are bullish about, and they are responding. Its seems the herb mentality is carrying the rest of the market up with them
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Russ
Super Contributor
Like give me some of that herb,man.
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venice
Super Contributor
Good question makes little sense but may as well go along for the ride.
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doomsdayza
Super Contributor
When's it time to go short for the gap close? Sell into the rally right?
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Shard
Super Contributor
Lol, was a typo. I think the word I ended up with is more appropriate though.
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SimonPB
Valued Contributor
chinese bail out is igger then the market cap of the JSE at it's hieght in May. Everybody vary excited for now.
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_nova
Super Contributor
The Chinese import raw materials and cash and export manufactured goodies. Right now they're not exporting much of anything because they're not getting much cash to import. They're going to spend their $600bn on infrastructure and boosting internal consumer consumption. I don't think they're going to focus too hard on importing resources coz it means cash exported and that's definitely not what they want to do. OMO. At some point in the next couple weeks that fundamental reality is going to sink in when it becomes obvious
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SimonPB
Valued Contributor
infrastructure needs resources; steel, oil etc.
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Not applicable
also gives Chinese the excuse to draw down on their embarrasingly large reserves. They can spend the money propping up the economy while putting they cash pile to good use on domestic projects.
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_nova
Super Contributor
oh I'm not disputing that Simon. The question is how much of that oil, resources etc are they really going to import and how much will they source locally or already have stockpiled? In the greater scheme of things $600bn is a drop in the bucket compared to the Chines economy of 6 months back. Sure, it's good news, but is it really that good? Is it enough to help stabilise (at least) the slide towards recession globally?
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john_1
Super Contributor
Geez this economy is still growing at 8% how much stimulation do they really need..
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_nova
Super Contributor
Yep, I should maybe have pointed out that with the level of net foreign reserves they have, they have massive potential for boosting fiscal stimulus. They really are not doing this for philantropic reasons. Though one must admit that $600bn is about 16% of their annual output so it is significant. China is doing this to gain political clout and to get more power in determining financial structures in the future. They are DEFINITELY going to get their pound of flesh out of the western economies for this move. With that agenda they are definitely not looking to bail out the global economy but rather to boost their own. If importing resources happens to be in their favour then we will be a very lucky flea on a very big dog's back
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Not applicable
Does anyone think the Americans will crash this party later on this afternoon?
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MichaelR
Regular Contributor
Dow futures Green 1.63%
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Wizard
Super Contributor
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SimonPB
Valued Contributor
for sure, tis just a drop. A large drop, but still just a drop in the bigger picture.
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SimonPB
Valued Contributor
I've heard talk of GDP slowing to 5%, and this drop adds about 3-4% a year for the next 2 years or so.
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