Sunday, January 11, 2015

The Chinese Middle Class is important.

China has began a push to improve the quality of life of it's people. It is a magnificent thing. The Chinese Middle Class is growing. The growth of the Middle Class across the globe is important for economic growth, but, more so to stabilize the domestic economies of these countries. The very last thing the Chinese people and their burgeoning economy needs is an implosion of their economy and monetary structure.

January 7, 2015
By Jeremy Grant

Derivatives volumes (click here) on the three biggest exchanges in Southeast Asia hit record highs in 2014 in a sign that the region's capital markets are diversifying beyond equity capital raising and trading into offering risk management and hedging.
The development also shows that the bourses are managing to tap a growing middle class of domestic investors who are becoming familiar with futures trading, which is riskier than equities but can offer higher returns.
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About 55 per cent of trading on the Thailand Futures Exchange (TFE) last year was done by retail investors. On western bourses, most futures trading is done by institutional investors.
“Given today’s volatile market, investors are turning to stock futures as a tool to manage risk and seek better returns,” said Rinjai Chakornpipat, TFE’s managing director....

Middle Class investors need a great deal of guidance and not exploitation of their new found happiness in their ability to build a better life. I am very worried the USA Republicans are destroying Todd-Frank and it will have a backlash in the global economy. These investors don't care about anything, except, money. The Chinese Middle Class should be equally as cautious about these financial instruments as the American people have become.

The Middle Class in any country is not a toy. It is real human beings with hope and dreams for their lives and that of their children. While Wall Street is welcome to buy and trade stocks that look interesting, they aren't allowed to destroy lives in doing so. 

The Chinese have a very different culture than the USA. When such hardship revisits the new Chinese Middle Class, I hope the boys on Wall Street are met with prison or worse. The justice in the USA was never sufficiently rendered following the global economic collapse. I am confident and hopeful the Chinese will appreciate the lack of expertise exhibited by these financial firms in these economic collapse. It is fraud. Wall Street banks and brokers talk a good game, but, in the end doesn't have the expertise to even understand and control outcomes from their complicated instruments called Derivatives and Swaps. If the global collapse beginning in 2007 is proof then I don't know what else does.

I would be very suspicious of any global banker who states, "We have learned so much from then." Huh? A global economic collapse was an experiment? It is called fraud. They didn't and don't know what they are doing. They simply want to do it again.