The U.S. is not immune to the global slowdown. Not with fears of the upcoming fiscal cliff, slowing manufacturing numbers, and stronger dollar. Europe is a mess as we all know, but it has been China that has been trading the weakest of them all. The Hong Kong H-shares index is in crash mode. It is a train wreck out there in China, 50 bp reserve ratio cuts will not get the job done. The aftermath of real estate bubbles are always devastating. Especially in the case of China, where construction is such a huge part of GDP. Watch for interest rate cuts coming soon in China, would not be surprised if they enter into a QE to join the global liquidity party. Or will they start more bridges to nowhere projects? Will they build more ghost cities?
On a side note, there is so much hype about FB, I cannot imagine how it will end well after the opening print. At the offer price of $38, the market cap is $104B, for a company that makes money off advertising, with no one clicking on their ads. Are you kidding me?
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