– BABA Bye Bye: Chinese MegaCap Plunges Below Post-IPO First Print (Zerohedge, Jan 29, 2015):
Alibaba is down over 10% this morning following a disappointing earnings release. This comes on the heels of selling pressure after the Chinese government released its report claiming significant “issues” at China’s richest man’s company. A combination of weak revenues, a 28% plunge in net income, slower than expected growth on its Tmall platform (and disappointment at the progress into mobile advertising) have sent the stock tumbling back near Facebook’s market cap.
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China has a very corrupt system, that is its greatest weakness….one of the reasons they are the weak link in BRICS.
Regardless of the pumping of the market this morning, the DOW closed down 251 points……………$251 billion. That makes four days of losses this week.
Perhaps the real economy, the one the stock market has ignored since 2009……is finally impeding its insane growth. How a market can go up and up regardless jobs continue to vanish at 300K a week is beyond me…..when store continue to close, consumption continues to drop regardless of low gas prices………it tells a truth that even the liars on Wall Street cannot hide forever.
When I started investing in the market at the ripe old age of 14, my father took me down to the brokerage office and opened an account for me. He put in money, and I bought a block of stock…….I think my first investment was in copiers. Back then, you had to buy stock by the block (100 shares) and hold it for at least a year and a day to avoid short term capital gains taxes. Long term capital gains tax was far kinder…..but the market relied on the real economy. I sold the copier stock later, finally bought some AT&T stock which I used to buy my first house when I was 20.
The market reflected the real economy, and it told a lot of truth.
Today, when bad things happen, the market would go up…………..until now.
Perhaps the real economy is forcing the truth into the light, until it does, nothing good can happen.
This time, there is no money to bail out the chief crooks, and the printing press has lost it’s virility, about 30% of the world now accept the dollar to complete international transactions. Technology has rendered the need for any world reserve currency obsolete, and the dollar hasn’t the power any longer. An impotent currency cannot overcome what is coming………BRICS and its open basket of currency allows no nation to lie about the value of its currency.
The US skated on being the world reserve currency for years. Now, it is over, and the end is upon us. Call Putin all the names they want, nothing can be done to change the truth that is finally upon us. For some reason, this quote comes to mind……….
“The moving finger writes, and , having writ,
Moves on: Nor all thy Piety nor Wit
Shall lure it back to cancel half a line,
Nor all thy tears wash away a word of it.”
Rubaiyat of Omar Khayyam
(Stanza LI)