Daily Price Movement / General Discussion, page-29695

Effectively China will become the super power witjout firing a bullet.

They knew exactly what they were doing in allowing Covid to escape to the Western World and wrote the playbook for lockdowns bringing economies to their knees and encouraging massive corporate and consumer debt.

They effectively crashed the Hang Seng by introducing tighter controls over the market leaders and I very much doubt they will bail out Evergrande in order to send further shockwaves through the western stock markets.

They have so much control now they may talk about rescuing Evergrande to produce relief rallies and then pull the rug or introduce another crisis

The housing market typically moves in 14 year cycles between peaks but in this particular cycle there has not been a trough so expect a downside reaction to extend for more than the traditional seven years to wipe out all the excesses.

A lot of speculation in housing has been supported by the "wealth effect" of people enjoying ever increasing Super balances and that will now be wiped out and a lot of panic sellers will hit the market.

You can almost guarantee that the Chinese will be buyers of last resort of housing stock.



The coming crash will be like the GFC and Dot Com bust all rolled into one and the ASX as per the chart I posted a few weeks ago will halve in value just like Hang Seng is doing now

Lending standards will tighten and interest rates will rise and discretionary spending the life blood of BNPL will be on the back burner.

in my view Zip will be unable to raise further funds in a fully fledged bear market and will not survive