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Stock Market Update. April 4th, 2014. InvestWithAlex.com

daily chart April 4th 2014t

A massive down day with the Dow Jones down 160 points (0.96%) and the Nasdaq down a bone crushing 110 points (2.60%). 

On Monday, both the WSJ and CNBC stated that statistically April is the best month to be LONG. Apparently, April has missed the memo thus far. In fact, you wouldn’t have been caught off guard if you were following our mathematical and timing work within our subscription section.  Not only was this sell off predicted a long time ago, but what comes next is as clear as night and day as well. Plus, believe it or not, today’s sell off had nothing to do with the jobs report, as my post at the open indicated. 

In particular, the Nasdaq and the iShares Nasdaq Biotechnology (IBB) took the brunt of the beating with IBB collapsing 4.01%. While most market pundits will view this in a typical “buy the dip” kind of mentality, this is so much more than that. It will be just a matter of time before the S&P and the Dow begin to play catch up. Remember, as our mathematical and timing work shows, the bear market of 2014-2017 is just around the corner. As I have mentioned yesterday, it will pay off to be very conservative here.

If you would be interested in learning exactly when the bear market of 2014-2017 will start (to the day) and it’s internal composition, please Click Here. 

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Stock Market Update. April 4th, 2014. InvestWithAlex.com  Google

Idiots Can’t See Bubbles Through The Bubble Forest

I am constantly amazed how people can look at today’s market and declare that the market is cheap or as this gentleman puts it… “market have pockets of silliness”. Sure, it’s all fun and games until stocks get slammed 20-40% on the downside. Which is exactly what is going to happen over the next few years according to our mathematical and timing work. I have already discounted the notion that markets are cheap based on the P/E ratio or any other similar nonsense. Click Here To See The markets are, indeed, in a massive speculative bubble perpetuated by a huge amount of credit. In other words, everyone maxed out their borrowing ability to speculate in the stock market. When such environments end, stocks tend to collapse.

That is exactly where we find ourselves today. As mentioned earlier, our mathematical work clearly shows a bear market and a severe US Recession between 2014-2017. If you would be interested in learning exactly when this bear market will start (to the day) and it’s internal composition, please Click Here.  

can't see bubbles investwithalex

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Idiots Can’t See Bubbles Through The Bubble Forest  Google

The Daily Ticker Writes: Market has “pockets of silliness” but is “far away from a bubble”: Howard Lindzon

Even as U.S. markets flirt with new highs, Stocktwits Chairman Howard Lindzon has only 40% of his portfolio invested in stocks. But this conservative approach can’t be attributed to concerns about a market bubble: “We’re as far away from a bubble as possible,” he says in the video above.

Lindzon believes there are pockets of “silliness” right now and chooses to invest in stocks that he can “explain to his children,” including Charles Schwab (SCHW), Interactive Brokers (IBKR) and robot maker iRobot (IRBT).

“There’s enough good companies to own,” he declares. “I am bullish on stocks.”

He’s avoided some of the sectors that have risen just as sharply as they have fallen — namely biotechs — and explains that a “stealth” rotation has been happening — investors are moving away from momentum stocks to previously unloved sectors like banks.

He admits that this market may seem “confusing” to many investors but he steadfastly dismisses talk that today’s indices resemble the dot com era.

“This is a very different environment from 1999,” he says.

At Least One Industry In Afghanistan Is Booming. Truly Disturbing

The US has a perfect track record at least in one thing. Every country we have directly invaded or meddled in over the last 20-30 years if fucked up beyond repair. Iraq, Afghanistan, Syria, Egypt, Libya, Ukraine, Kosovo, etc… are all disasters. But, it’s not all bad. America has helped one industry in Afghanistan to fully recover, boom and dominate worldwide markets. HEROIN.  

“Since the US came down on the Taliban and occupied Afghanistan in 2001, heroin production in the country has surged almost 40-fold. One year ago the estimated number of heroin addicts dying due to Afghan heroin in the preceding decade surpassed well over one million deaths worldwide. Last year, Afghanistan harvested a record quantity of opium. The annual report of the International Narcotics Control Board maintains that Afghan poppy fields now occupy a record 209,000 hectares, a 36 percent increase from 2013.Today more than half of the provinces in Afghanistan are growing opium poppies. Reports say Afghanistan is responsible for production of around 80 percent of the world’s opium and heroin.”

And that’s where your taxpayer money went. Well, that, plus blowing up a few mountain caves and an an inhalation of 351 of 1976 Toyota Pickups full of Taliban fighters. I guess I shouldn’t be surprised since the US has destroyed its own financial base, political system and any hope for true future economic growth (anytime soon). Oh well, at least the Biggest Loser is on tonight.   (see full report below). 

one industry in afghanistan is booming

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At Least One Industry In Afghanistan Is Booming. Truly Disturbing  Google

 

RT Writes: Afghan H-bomb: Record opium harvest, billions burn in ‘war on drugs’

Finding a solution to the thriving heroin production in Afghanistan has been on the back burner ever since the Americans occupied the country. The new Afghan president who will be elected next weekend will have to battle record opium harvests.

Since the US came down on the Taliban and occupied Afghanistan in 2001, heroin production in the country has surged almost 40-fold. One year ago the estimated number of heroin addicts dying due to Afghan heroin in the preceding decade surpassed well over one million deaths worldwide.

Last year, Afghanistan harvested a record quantity of opium. The annual report of the International Narcotics Control Board maintains that Afghan poppy fields now occupy a record 209,000 hectares, a 36 percent increase from 2013.

Today more than half of the provinces in Afghanistan are growing opium poppies. Reports say Afghanistan is responsible for production of around 80 percent of the world’s opium and heroin.

US soldiers from 4th platoon Alpha company 5/2 ID Stryker Brigade Combat Team (SBCT) 1-17 infantry batallion patrol near a poppy field in Shahwali Kot district Kandahar on May 11, 2010. (AFP Photo / Tauseef Mustafa)

US soldiers from 4th platoon Alpha company 5/2 ID Stryker Brigade Combat Team (SBCT) 1-17 infantry batallion patrol near a poppy field in Shahwali Kot district Kandahar on May 11, 2010. (AFP Photo / Tauseef Mustafa)

Heroin takes toll on Afghan society

Yet the country’s probably most disastrous problem is that the Afghan people not only produce record amounts of opiates, they are actively consuming them, with a heroin vortex sucking in more Afghanis every year.

According to the UN, 1 in 30 Afghani is a drug addict – that’s over a million people in a 30-million population. This makes Afghanistan not just the main producer, but at the same time one of the world’s leading drug consumers.

Afghan drug addicts smoke heroin on a street in Jalalabad on February 7, 2014. (AFP Photo / Noorullah Shirzada)

Afghan drug addicts smoke heroin on a street in Jalalabad on February 7, 2014. (AFP Photo / Noorullah Shirzada)

The new Afghan president will have to find ways to save his people from domestically produced drugs, which also form the backbone of the national economy.

Despite declaring war on drugs in Afghanistan, all efforts to disrupt the production of heroin have not helped to solve the problem in the slightest, with more drugs flowing out of the country every year. Earnings from the trade are clearly considered worth the risks. And Afghan heroin is spreading in all directions, and in particular – Russia.

Because the International Security Assistance Force (ISAF) headed by the US remains the dominant power in Afghanistan for the second decade now, Russia has been repeatedly asking Washington to curb heroin production in the Afghan mountains, albeit with poor results.

Russia’s President Vladimir Putin blamed the ISF for doing almost nothing to eradicate drug production in the occupied country. At the same time the US maintains that since 2002 it has spent $7 billion on fighting drug production in Afghanistan, and allocated $3 billion on agricultural programs trying to encourage Afghan nationals to grow other crops in place of the opium poppy.

 

An Afghan government official (L) and two Afghan National Army soldiers (C and R) cut down opium poppies in Bihsood district, some 25 kms north of Jalalabad , 08 April 2004. (AFP Photo / Shah Marai)

An Afghan government official (L) and two Afghan National Army soldiers (C and R) cut down opium poppies in Bihsood district, some 25 kms north of Jalalabad , 08 April 2004. (AFP Photo / Shah Marai)

 

In 2014 things deteriorated with the escalation of the political crisis in Ukraine and the Russia-US row over Crimea separating from Ukraine to reunite with Russia.

The US introduced sanctions against Russia and a number of its officials, thus breaking many contacts established over the years.

The new blacklist included the head of the Russian Federal Drug Control Service, Viktor Ivanov, who also co-chairs the Russia-US Presidential Commission workgroup on countering the illegal drug trade. Russia’s anti-drug tsar accused Washington of attempting to hide its responsibility for the drug crisis in Afghanistan.

NATO has also announced that it is suspending all military and civilian cooperation with Russia over the Ukrainian crisis.

On Wednesday news came that NATO is giving up its joint program with Russia, which is currently teaching Afghan helicopter pilots. Washington also intends not to buy original spare parts for Russian-made helicopters used by the Afghan army.

Although NATO Secretary General Anders Fogh Rasmussen announced that the alliance will continue cooperating with Russia in countering drugs in Afghanistan, the real future for such cooperation looks grim, particularly after the US President’s deputy drug czar, Michael Botticelli, refused an invitation by his Russian colleague to come to Moscow, citing Russia’s actions in Crimea as the major reason.

The lack of international dialogue could allow this business to grow even further, Dr. Bidit Dey, an expert on Afghanistan from the University of Northumbria told RT.

“The West, and of course the US in particular, have to set aside all geopolitical interests when it comes to global security,” Bidit Dey said, stressing that “There is a lack of cooperation between Russia and the West and that would be a huge threat to Europe’s security and also to overall social stability.”

While Washington is trying to avoid shouldering the responsibility for allowing heroin production in Afghanistan to burgeon, there is growing agreement that this deadly business simply can’t go on forever.

With the presidential election set in Afghanistan for April 5 and the American troops expected to leave the country by the end of 2014, does the world stand a chance for a real change?

Is Another 1987 Type Of A Market Crash Around The Corner?

1987 crash investwithalex

The chart above has spread around the financial community like a wildfire, predicting a 1987 type of a crash (20% down in 1-2 trading days) Is it legit? The chart is legit, but comparing today’s market environment to 1987 is like looking up horses ass to see it’s teeth -OR- it confuses cause and effect. 

While I am not suggesting that the crash is not possible, you could compare today’s market to many of the 5-year cycles I have described on this blog. Click Here to read some of it. In a nutshell, today’s market matches many other 5 year cycles, not only 1987….1924-1929, 1932-1937, 1961-1966, 1982-1987, 1994-2000, 2002-2007, 2009-2014, etc…there are many others. 

When the 5 year cycle completes itself the market tends to roll over. It will not be different this time around. Whether the market will crash or simply roll over into a sustain long term bear market is irrelevant here. What is relevant? The bear market of 2014-2017 is just around the corner and it will slam stocks over the next few years. If you would like to know exactly when it will start (to the day) and it’s internal composition, please Click Here. 

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Is Another 1987 Type Of Market Crash Around The Corner?  Google

Breakout Writes: Dow hits record as 1987 crash comparisons continue

Has a longtime Minnesota bull turned bearish? Jim Paulsen, Chief investment strategist at Wells Capital Management, came out with a peculiar research note earlier in the week. Paulsen highlighted some similarities with an S&P 500 (^GSPC) chart from our current bull market with one that shows a similarity to the 1982 bull market that culminated int the Black Monday crash in 1987:

 

the contemporary bull market has been following the 1982 bull market fairly closely. As recently as last year-end, both bulls were up about 175% from their respective bear market lows! The important anniversary passed just a couple days ago was the 1274th trading day of both bull markets – the day on 8/25/1987 when the 1982 bull market reached a notable peak. On that day, the S&P 500 Index peaked for the year at 336.77. Moreover, we are now just 37 trading days from another important anniversary in financial history – 10/19/1987 when the S&P 500 Index suffered its biggest single day collapse ever!

As intriguing as the comparison sounds, and with the Dow (^DJI) and S&P 500 hitting new all-time highs today, Breakout viewers will remember these comparisons with past market moves have usually been non-predictive. But fun market talk, sure.

Paulsen will be the first say he doesn’t see a big, ugly 20% move coming. “I’m not anticipating that [1987 type crash] at all,” he says, but he does point out the genesis of both bull markets as very similar – born out of extremely tough economic times in 1982 and 2009.

“I would suggest that history won’t repeat, i don’t think we’ll have a big collapse… but sometime in the next several months, good news on the economy might become bad news for the market like it did in 1987.” Paulsen says a 10% move wouldn’t surprise him in the least.

Despite his call for a modest correction, Paulsen still feels strongly that investors should be positioned aggressively in cyclicals (XLY), with this morning’s “Goldilocks” payrolls number keeping the market happy, and leaving the Fed little option but to continue its low rate policy and slow taper.

Warning: Is NASDAQ’s Bloodbath Just Starting?

nasdaq selloff investwithalex

Today sell off should not come as surprise to anyone. Particularly those who have access to our premium subscribe section. In fact, we are making a lot of money on some of our short positions established over the last two weeks. Again, all trades and positioning is available in our premium section.  Further, today’s action might be just the prelude of what is to come. As I have said before, the bear market of 2014-2017 is just around the corner. If you would like to learn exactly when the bear market will start (to the day) and it’s internal composition, please Click Here.  

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Warning: Is NASDAQ’s Bloodbath Just Starting?  Google

Food Prices Continue To Surge. Time To Invest?

Outside of inflation within the stock market and some other asset classes (due to FED’s credit expansion), food prices is the only other category where you can witness the so called inflation.  Otherwise, core inflation dropped to a 10 Year low of 1.1% Y-O-Y or 0.1% in February. 

Is it time to load up on food commodities or related stocks? 

It might be a good idea. Corn and soybeans in particular are starting looks good. The fundamental case for food commodities is fairly strong as well. The continuation of low interest rates and stimulus, potential rotation out of crude oil and into food commodities, various weather related disasters to crops around the world, etc….. can all play well in making the bull case for the markets in question. While I do not currently have the cyclical/timing breakdown of the commodities markets, I would wait for a technical confirmation of the bull market here (use corn) before committing capital.     

commodity prices

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Food Prices Continue To Surge. Time To Invest?  Google

 

Rising food prices pinch consumers, but could enrich investors

Drought and severe cold mean hardship for farmers and headaches for strapped consumers facing higher grocery prices.

But on Wall Street, the severe California water shortage and extreme winter weather conditions across the country are among reasons to warm to agriculture-related investments, which appear well-positioned to continue recovering after having spoiled in the commodity bust of recent years.

Large harvests and cash exiting from the once-popular “commodity trade” among fund managers led to a serious slump in crop prices last year. But so far in 2014, the PowerShares DB Agriculture exchange-traded fund (DBA) has climbed 15% in price. This fund invests directly in a broad spectrum of crop and livestock commodity futures.

This likely means an end of the brief reprieve from food inflation U.S. households were granted in 2013. The USDA forecasts retail food prices as a whole are likely to climb 2.5% to 3.5% in 2014, driven largely by drought-impacted supply strains on fruits, vegetables, dairy products and eggs.

The United Nations’ food organization likewise reported global food prices jumped in March to their highest level in a year, with political turmoil in Ukraine – a major grain producer – adding to weather-related difficulties.

Some individual food goods are seeing outsized price shocks. Market prices for the world’s most popular variety of coffee beans are up more than 60% this year to a two-year high, due in part to drought and then disruptively heavy rains in Brazil. (Consumers going to their local coffee houses for a cup have not been affected by this surge and are generally less likely to feel the hit from upward movement of raw commodity prices.) In a quirkier development, lime prices have more than doubled in recent months due to bad weather, disease and disruptions by organized crime.

Nasty winter weather fouled transport networks and has stranded plenty of wheat in storage facilities, and years of summer drought have left the nation’s cattle herd at multi-decade lows. As Yahoo Breakout points out in the attached video, corn prices in particular are on the climb, helped along this week by a USDA report estimating American farmers will allot 4% less acreage to corn this year.

Add all these supply issues to a still-hungry and growing world, and the case for hunting for some agricultural plays appears even brighter – especially given that shares of so many big ag-related companies still trade well below their peak levels of a few years ago, even as the broad stock market clicks to new all-time highs.

The most popular proxy for the barnyard economy, the MarketVectors Agribusiness ETF (MOO), is almost exactly flat over the past two years, left behind by the 35% advance in the Standard & Poor’s 500 index. The ETF is heavily weighted in seed, fertilizer, crop-processing and farm-equipment leaders such as Monsanto Co. (MON), Potash Corp. of Saskatchewan (POT), Archer-Daniels-Midland Co. (ADM) and Deere & Co. (DE).

In the past month, “the Moo,” as the fund is cheekily known, has shown some life, outpacing the broad market and gaining the attention of investors looking for overlooked opportunities in a picked-over market.

 

Josh Brown, financial advisor at Ritholtz Wealth Management and writer of the Reformed Broker blog, has flagged the sector as a potential outperformer this year, and a growing group of chart-studying technical traders have warmed to the Moo as it flirts with breaking out from its longstanding range between about $50 and $55.

Deere shares in particular have shown new life in recent weeks, climbing nearly 6% in the past month to approach $92, after going sideways for a year. The stock is intriguing for its combination of a modest valuation – about 11-times forecast 2014 profits of $8.43 a share – and for being largely disliked by the Street. Only four analysts among the 23 who follow Deere rate the stock a Buy, versus eight with Sell-equivalent ratings. That’s encouraging to Deere bulls, from a contrarian perspective. 

Jim Larkins, manager of the Wasatch Small Cap Value fund, (WMCVX) focuses in large part on “fallen angel” stocks – one-time high-riding favorites that have fallen temporarily out of favor. He’s eyeing a handful of agricultural plays as possible rebound candidates. He reports that he hasn’t yet pulled the trigger, in fear that the broad ag cycle might not have durably bottomed, “but we can’t be too far away.”

Among the names on his watch list are Titan International Inc. (TWI), a maker of tires and wheels for tractors and other off-road vehicles; Intrepid Potash Inc. (IPI), a rare U.S.-based potash producer for fertilizers that might become an acquisition target someday; and American Vanguard Corp. (AVD), which distributes older, “orphaned” herbicide and pesticide products many farmers are rediscovering. All three stocks are well below their highs of a couple of years ago, but have stabilized at cheaper prices. 

It’s hard to find a less dazzling economic sector than this one. But that’s exactly why these earthier names might prove to be ripe opportunities in a market captivated by buzzy Internet and consumer “story stocks.”

Attention: VIX Foretells A Major Market Beating Ahead

The VIX is scratching the bottom of the barrel here, indicating outright complacence in this highly speculative and overpriced market. Selling around $12.75 VIX is not that far from it’s all time low. Just as a reference point, we faced a very similar situation in 2007 when VIX got into $10 territory. Right before the 2007-2009 collapse initiated. Today, we face a very similar situation. Not only in VIX, but in market’s fundamental setup. As per out mathematical and timing work the bear market of 2014-2017 is just around the corner. When it starts expect VIX to spike. If you would be interested in learning when the bear market of will start (to the day) and it’s internal composition, please Click Here. 

VIX

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Attention: VIX Foretells A Major Market Beating Ahead  Google

Why the market may be underpricing fear

Is the market too complacent? 

Right now, it looks like fear has been in a little bit of a bear market, at least when measured by the CBOE Volatility Index, or “the fear index” as it’s affectionately called.

The index basically measures the cost of insuring stocks against a fall, and from the looks of it, the market isn’t all that fearful. As of Thursday, the VIX was trading around 13. Just two weeks ago, it was as high as 17 and, in early February, it was above 21.

That may not be a good thing. The VIX and stocks tend to move inversely. Often times, a low VIX can signal complacency. And despite some global turmoil, judging by the VIX, investors don’t seem that concerned.    

“Trading the VIX has really been tough,” says CNBC contributor Andrew Busch, editor and publisher of the Busch Update. “People have been trying to buy breakouts on this, expecting bad things to happen like the Ukraine.”

However, those expecting the VIX to break above the 21 handle have thus far been disappointed. Busch notes that the VIX has stayed well within a range of between 21 and 11 for the past couple of years, a far cry from exactly four years ago when it hit 48.2.

CNBC contributor Gina Sanchez, founder of Chantico Global, said that although issues such as shake-ups in emerging market currencies and the Crimea crisis have caused the VIX to spike ever so slightly, the market is still pricing risk down.

“They’re ignoring [risk issues] and they’re looking towards the fact that we’re coming out of a cold weather spell that has kept macro data down,” said Sanchez. “That macro data is starting to pick back up. We’re starting to see better jobs numbers. The general positivity in the markets is basically causing the markets to underprice risk.”

Sanchez believes the market is underestimating risk at a time when she thinks stocks are fully priced if not slightly expensive.

“Any of those risks could actually have a devastating effect on the markets,” said Sanchez. “That’s why it’s important to watch the VIX when it gets this low.”

Warning: Chinese Homebuilders Begin Their Collapse

As per Bloomberg report below there are over 90,000 real estate developers in China. A huge number, even for a country of that size. With unprecedented credit growth in China over the last decade and over the last 5 years in particular (click here), this bubble is ready to blow up. Zhejiang Xingrun, the biggest developer in Fenghua, is now in default after having no money left over to repay any of the more than $500 Million in loans. According to some reports, tens of thousands of other developers find themselves in a very similar situation. 

Yet, that doesn’t not deter most of China’s real estate bulls. According to Andy Rothman at Matthews Asia, there is no property bubble and prices in China’s real estate will continue to increase. Right, I forgot. Millions of dirt poor Chinese form various provinces are about to move into the empty cities to buy all of those poorly build and highly overpriced apartments. The reality is, it’s never different and always ends the same way. Expect Chinese real estate market to blow up as soon as global recession of 2014-2017 settles in.  

China Homebuilders

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Google

Bloomberg Writes: A Shakeout Looms for China’s Homebuilders

Amid a cluster of half-built brick townhouses surrounded by peach groves on the outskirts of Fenghua city, workers could be seen taking down metal scaffolding and hauling away steel plates last month. They had heard that Zhejiang Xingrun Real Estate, the company building the housing development called Peach Blossom Palace, was insolvent. “The developer owed us hundreds of thousands of yuan” for scaffolding and steel, said workers Xie and Wang, who would only give their surnames. “We are taking these materials back for now because there’s no work here.”

The collapse of Zhejiang Xingrun may signal the start of a shakeout among the nation’s almost 90,000 real estate companies. After China began allowing private homeownership in 1998, homebuilders binged on easy credit from banks and other lenders. Now many developers are struggling with debt as thousands of apartment buildings across the country sit empty and the government makes it harder to borrow. CBRE Global Investors says there are about 30,000 developers after small construction companies and those formed for only one project are eliminated. “That is far too many, even for a country as large as China,” says Richard van den Berg, country manager for China at CBRE. “Consolidation needs to take place.”

Home prices in China have climbed 60 percent since 2008, when the government began a 4 trillion yuan ($645 billion) stimulus program to counter the effects of the global financial crisis. Former Premier Wen Jiabao began trying to cool the property market in 2010, imposing higher down-payment requirements, raising interest rates on loans for second-home purchases, and increasing construction of low-cost housing. Li Keqiang, who succeeded Wen in March 2013, further tightened credit in June, in part by cracking down on nonbank lenders.

About 67 percent of housing under construction in China last year was in less affluent cities such as Fenghua, according to Nomura Holdings (NMR). About 120 miles south of Shanghai, with a population of 500,000, Fenghua is best known as the birthplace of former Chinese nationalist leader Chiang Kai-shek. The city is filled with pawn shops, textile and garment factories, and empty residential buildings.

Zhejiang Xingrun, the biggest developer in Fenghua, owes 2.4 billion yuan to banks, 700 million yuan to private lenders, and 400 million yuan to construction companies, according to Xu Mengting, director of the news office at the Fenghua city government. The company hasn’t declared bankruptcy, and the local government is holding discussions with commercial banks about the company’s debts, Xu says.

Authorities have detained Shen Caixing, who founded Zhejiang Xingrun 14 years ago, and his son Shen Mingchong for raising money illegally, according to Xu. Neither Shen nor his son could be reached for comment. Wu Xijuan, a property agent at Tengfei real estate agency in Fenghua, says Shen was a celebrity. “Everybody called him ‘Cement Shen,’ because he started out with a renovation and cement business,” Wu says.

Zhejiang Xingrun was one of the first companies in the property business in Fenghua “with no previous experience or professional sales teams,” says Zhong Yongjin, a researcher at Centaline Property Agency, China’s biggest real estate brokerage. “But these local developers usually don’t have risk controls,” he says, and they don’t respond well to changes in market conditions. Xu, who says the main reason the developer is insolvent is that it “wasn’t run well,” adds that “fluctuation of land prices also played a role.”\

With lending tight, more developers such as Zhejiang Xingrun will go under, says Johnson Hu, a property analyst at CIMB Securities Research (CIMB:MK). Premier Li “has already signaled that as long as there are no systematic regional risks, the government won’t do much because some cases of default are inevitable,” Hu says.

While real estate companies may founder, the property market isn’t in danger of collapsing, according to Andy Rothman, an investment strategist with money manager Matthews Asia. He doesn’t see signs of a property bubble partly because urban income growth in China has outstripped the rise in home prices in the past eight years. Also, Chinese buyers pay for homes either in cash or with significant down payments. “Is this the tip of the iceberg or a signal that there are serious problems in the Chinese real estate market? That seems highly unlikely,” Rothman says. What has changed is that the Chinese government is more willing to let private companies fail, and “that is a good thing,” he says. “If you are going to have creative destruction, some companies are going to have to go out of business.”

US Government Warns China & Russia. Hilarity Ensued.

In yet more proof that the US Government is being run by a bunch of retarded idiots (no offense to the mentally challenged community), the US has warned both Russia and China overnight. 

So, let me get this straight. Russia is not allowed to charge Ukraine market prices for gas? What had happened to the idea of American capitalism or market prices? China and Russia proceeded to shake in their boots as they were forced closer together by the western powers…….once again. Just as it was outlined in this Report. 

On a more serious note, the US needs to stop telling other nations what to do. Instead of promoting war, destabilizing nations, running up a huge debt, blowing up speculative bubbles, the US should concentrate on its own domestic issues and the economy. There is plenty to take care of here. 

cold war 2 investwithalex

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US Government Warns China & Russia. Hilarity Ensued.  Google