Preview from Europe: Profit Taking Pushes Market Down [View article]
Mole, you are quite right: "..The harsh reality remains that the economic and earnings backdrop is not improving one iota...."
I would add another harsh reality, that all the desparate, misguided and inflationary policy measures undertaken by Western countries are intended to prop up artificially oversized financial sectors that have sucked the blood out of the productive sectors of their economies. Even if successful, the resulting recovery cannot be healthy, as these multi-trillion dollar bailouts are drawing away even more resources from the remaining, dwindling productive sectors.
China is fortunate that they have not had time to develop a punitively oversized financial sector, and now they have learnt, at our expense, that they need to avoid it.
Preview from Europe: Profit Taking Pushes Market Down [View article]
I would add another harsh reality, that all the desparate, misguided and inflationary policy measures undertaken by Western countries are intended to prop up artificially oversized financial sectors that have sucked the blood out of the productive sectors of their economies. Even if successful, the resulting recovery cannot be healthy, as these multi-trillion dollar bailouts are drawing away even more resources from the remaining, dwindling productive sectors.
China is fortunate that they have not had time to develop a punitively oversized financial sector, and now they have learnt, at our expense, that they need to avoid it.