When will the Shanghai share market crash? Its up a bit over...

When will the Shanghai share market crash? Its up a bit over 100% since 1 January, after an already massive run up to the end of 2006? How much longer can that madness last? How will that impact Australia's share market?

The US employment figures were worse than even I expected. I thought the crunch for the US would begin in late 2007/early 2008. Bad recession looming there.

US Fed to the rescue? Will it make a difference or just fuel inflation?

US market to fall much futher.

Eventually the deflationary effect is likely to be worldwide, with US and probably UK leading the way. Most of the developed world has been using the easy credit machine for 25 years, and the financial system is under massive strain. All that financial deregulation showed is that you can not trust unfeterred financial markets because of "moral hazard' problems. I used to wonder how banks could consistently generate rapidly growing profits over such a long time frame. The answer was financial engineering (MBL being the "High Priest") and an anticipation that they would be bailed out by the taxpayer as a generalised banking failure is politically unacceptable.

Not sure how soon the Australian share market will really tank. It might just have another "correction" and then just level off for some months until actual demand for commodities and commodity prices start to get impacted. Financial sector should feel the impact first, and that is a big segment of the share market.

Not sure if I will enjoy the pain, as it will affect all of us in some way.