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Well that's a double bad and I'm not so booming Beijing put it together woody actually -- a lot of down arrows fast -- -- -- away wide on these two startling development that Bernanke's can't exist and didn't.
The party could be over in China not so -- its boom days might be as well.
Because as soon as the Fed Chairman indicated the days of buying low interest rates might be coming to an end sooner than good thing.
Then that news out of China that its manufacturing sector was slowing well just icing on the -- cracking -- The former Office Depot -- -- On all the -- you need these -- markets just might be builds on piles of sand.
Steve Bush today at UBS insisting we rebounded by days and in the doubt if you're just look at it's finished -- well you know these -- no big deal.
Bomb but what a wild ride and and I'm wondering that says something about.
Would have a prickly market it here there everywhere doesn't.
Well it does you know those two pieces of information are really significant first.
Ben Bernanke saying that he's gonna dial back on the bond buying secondly that China's manufacturing sector.
Went negative last month for the first time a long time to remember that manufacturing sector has been the world's global engine.
Global markets went down Japan one of the largest markets in the world went down 7% that's like the Dow dropping a thousand point nine.
All Asian markets down 2% European markets and what does the US market didn't hit you on it is so this says something about this -- -- if you didn't start.
-- Stephen and and I'm wondering how did it -- navy did you cooler heads prevailed -- kind of said well.
He really didn't say he was stopping -- innovate they always loved to.
Besides it's an appointment signaled -- still gonna have our back pencil and have -- back so I guess what I'm asking you Steve is what happens when he does have to.
Have to stop.
Well this is the point you know they they didn't they didn't take it seriously and they show ID and if they do and when they do.
These markets are gonna go down -- -- the committee for economic development has been.
Complaining and warning about the debt situation.
And about the economy we do not have a healthy economy here we're growing at about 2%.
-- only adding jobs at a small rate not even enough to keep up with population so much self.
That he had total employment rate -- the participation rate is the lowest it's been since the Carter years so this is not a healthy situation.
And if you look at the Chinese manufacturing sector.
This says the Christmas is not going to be good in this nobody's talking about this yet but all the manufacturing is happening now.
For the holiday buying and then it's gonna start shipping watch the shipments here later in the summer and in the fall because they've got to get into the stores.
This is not a good sign for Christmas which is you know the consumer sector 70% of our -- We have -- you know so little girls who -- I hear you but I can look at all of that and say well markets declining as well aware in Japan even with the seven.
Percent you know hit today it's a market that was you know in and out of five and a half year highs so maybe where Craig paying too much reason.
Yeah well the course and the Nikkei was way up but look.
That's how our markets are way up as well good I think the point here is that we do not have a healthy economy.
And you can't keep going on you know this bubble kind of spending forever.
We're at what seventeen and a half trillion dollars in debt where does that get going yeah China's -- some Japan's find some we set out earlier.
But it's going to the -- so if you don't have the bad.
Taking the debt from one pocket for the other.
Where's it gonna come from is only one place and that's that we're gonna have to print money.
When you print money ultimately it's going to be inflationary and I know chairman -- he says he doesn't see signs of inflation.
Well not today but we sold all the -- sport it is it is ultimately going to happen.
In the markets you know either are gonna react when they figure that out or react when it happens at one point or another we have to pay the piper that's the issue.
-- could see it and thank you very much.
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