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 China selloff leaves stocks reeling 
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Post China selloff leaves stocks reeling
NEW YORK (CNNMoney.com) -- U.S. stocks headed for an early selloff Friday, following a volatile trading session in Asian markets that ended with the Shanghai Composite down more than 5%.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were all sharply lower ahead of the opening bell. Futures measure current index values against perceived future performance.

Stocks sank Thursday, a day after Cisco Systems issued a sales forecast that disappointed many investors. The network equipment maker is seen as a bellwether for demand across the technology sector.

Read more here: http://money.cnn.com/2010/11/12/markets/premarkets/index.htm?hpt=T2

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Fri Nov 12, 2010 6:26 am
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Post Re: China selloff leaves stocks reeling
As of 12:34pm, all American indices are down, from Canada to Argentina.
All precious metals are down about 3.5%.

Dow down 1.2%
NASDAQ down 1.7%
S&P down 1.36%
AMEX down 1.57%

Most European markets down, but only slightly; DAX up slightly

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Fri Nov 12, 2010 10:47 am
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Post Re: China selloff leaves stocks reeling
China Move Could Counter Fed’s Efforts
By KEITH BRADSHER
Published: November 19, 2010

Commercial banks were ordered to transfer an additional 0.5 percent of their assets by Nov. 29 to very low-yielding accounts at the central bank, the People’s Bank of China. The central bank relies mainly on these reserves for the renminbi to buy about $1 billion a day worth of dollars, euros and other currencies — purchases that prevent the renminbi from appreciating.

con.

http://www.nytimes.com/2010/11/20/busin ... wt=nytimes

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Fri Nov 19, 2010 6:38 pm
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Post Re: China selloff leaves stocks reeling
China's credit bubble on borrowed time as inflation bites

The Royal Bank of Scotland has advised clients to take out protection against the risk of a sovereign default by China as one of its top trade trades for 2011. This is a new twist.

It warns that the Communist Party will have to puncture the credit bubble before inflation reaches levels that threaten social stability. This in turn may open a can of worms.

snip

The Politburo said on Friday that China would move from "relatively loose" money to a "prudent" policy next year, a recognition that credit rationing, price controls, and other forms of Medieval restraint are not enough. The question is whether Beijing has already left it too late.

snip

"I remain convinced we are witnessing a bubble of epic proportions which will burst – catching investors as unawares as the bursting of the Asian bubbles of the mid-1990s. Ignore these indicators at your peril," he said

In a sense, inflation is a crude way of curbing China’s export surpluses and therefore of resolving a key trade imbalance that lay behind the global credit crisis.

http://tinyurl.com/24b3z58

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Mon Dec 06, 2010 11:48 am
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