Late Night Ramblings.

Hi,

I've just watched Foreign Correspondant on the ABC. The show was about China having a sixty million surplus of appartments. They have a huge property bubble.

So I was having a few 'redbulls' and thinking; If China had a property crash, that would take out our mines, and if our banks couldn't get foreign credit then that would take out our property market.

Our banks, mines and property would drop. So how would one go about protecting oneself?, while acknowledging it could be 1-2-3 years before the cracks develop.



Johny.

 

The Australian housing bubble furphy...

 

Usually what makes all of us worry about the sky, would not take its toll as expected.

Why?

Each of us could not predict the future but if all of us expect something the price of the market have put it into consideration without matter it would happen or not. The great damage to the market is always those which are really risky but no one expect the damage.

After GFC, there were so many sub-crises and policy makers seemed wiser than before. If GFC itself could not drag the sky down, I could not see any crisis in China could do so. Now everyone globally knows it is not joking to let the sky down. In China, people buy houses with much bigger deposit than in Advanced economies; some new built ones could be loved by ghosts but should not drag all down to the ground; running the economies more cautiously is understandable but killing the economies seems no one dares to do in China as in Europe and US; don't forget in US the house crisis came with huge default and foreclosure. why? they could not afford to pay the interests. Naturally we predict darker in darkness. That is not really bad since in the darkest time the opposite thing has made its decision to appear, the Sun!

How about Japan rebuilding? How about global economies back to the normal tracks to the resource demand? GFC has shown that emerging economies could not be decoupled from the advanced economies and actually it also shows the risks in emerging economies would result in much less damages than people expect. We all could not guess very correctly! If too much worries are around the corners it is the time to relax! Market will climb up on the wall of worries sooner or later.

 

Haha tropo, if we could see light when the market full of crying, we could have a good day everyday.

Do wonder when I could learn how to play the guitar while enjoy the market game? All of us could cry or laugh but it seems better we do so on the pile of gold.

Life is good if we know when to laugh as that if we know when to hold'em and unfold'em in the market.

Life is good and really good!