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In Chinese culture, it is much more common than it is in the US for family members to share their finances, so you have to consider that many of them may be working with money earned by family members with more education.
LOL. This has nothing to do with education. Stock market is driven by many factors. In the case of China, the economy is going to crap. Debt must be serviced. With no new money, how can China continue to undercut free market capitalism in the west? How can they compete with such high real estate prices? Well, those are falling now.
A lot of money is trying to find a new place to settle. Money often flocks to the destination offering the highest potential for return. In China, that is the stock market. Everyone knows it will eventually crash. It happened before.
But what is left to invest in over in China? They don't like to consume. They would rather save. And increasingly, they would rather invest. And working for America without massive state subsidies... Not a good long term strategy for organic growth. Certainly won't create masses of middle class consumers. This stock market bubble looks a great deal like our stock market bubble, and the events leading up to the 1929 stock market crash.
Since corporations over here profit on their own stock gains, I'm sure Chinese corporations will follow suit. This could lead to a whole new age of market bubbles. One the likes of which has never been witnessed before.
LOL. This has nothing to do with education. Stock market is driven by many factors. In the case of China, the economy is going to crap. Debt must be serviced. With no new money, how can China continue to undercut free market capitalism in the west? How can they compete with such high real estate prices? Well, those are falling now.
A lot of money is trying to find a new place to settle. Money often flocks to the destination offering the highest potential for return. In China, that is the stock market. Everyone knows it will eventually crash. It happened before.
But what is left to invest in over in China? They don't like to consume. They would rather save. And increasingly, they would rather invest. And working for America without massive state subsidies... Not a good long term strategy for organic growth. Certainly won't create masses of middle class consumers. This stock market bubble looks a great deal like our stock market bubble, and the events leading up to the 1929 stock market crash.
Since corporations over here profit on their own stock gains, I'm sure Chinese corporations will follow suit. This could lead to a whole new age of market bubbles. One the likes of which has never been witnessed before.
That's why Chinese billionaires and millionaires are buying up overseas properties and making overseas investments like crazy. They already know the Chinese economy is in for sustained hard times.
So, you are a chinese citizen. No social security, no safety net really. You take what you would otherwise put into social security over here....and try to find some way to avoid inflation.
Choices? Real estate, or stocks.
And both are massive bubbles. everyone knows it that has a education, or money to hire people to show them it.
So...what happens to all of the chinese poor who are depending on this for social security....and the bubble pops?
China will have to find someone to blame. They will need a massive distraction. Like say...Taiwan.
- 2.3 Million people may sound like a lot but it's actually less than 0.2% of China's population. It's not like everyone and their moms are doing this, only a very, very limited few.
- Education level is different in China, many people dropped out from high schools. That doesn't mean anything, they could still be rich. Remember, these are the 0.2%, they could be businessmen or drugs kingpin, professions that don't require degrees, for all we know.
- The Chinese stock market is still in its infancy (relatively speaking), so it's only natural that many people are new investors.
That's why Chinese billionaires and millionaires are buying up overseas properties and making overseas investments like crazy. They already know the Chinese economy is in for sustained hard times.
Agree with this, but sad to say that,
its only Chinese people, but also other foreign countries.
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