miercuri, 8 iulie 2015

Han Fan: "Video RankR Demo Video - get *BEST* Bonus and Review HERE!!! ... :)..." and more videos

Han Fan: "Video RankR Demo Video - get *BEST* Bonus and Review HERE!!! ... :)..." and more videos

Mihai, check out the latest videos from your channel subscriptions for Jul 9, 2015.
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8 Ways Content Marketers Can Hack Facebook Multi-Product Ads - Moz Blog

8 Ways Content Marketers Can Hack Facebook Multi-Product Ads

Posted by Alan_Coleman

The trick most content marketers are missing

Creating great content is the first half of success in content marketing. Getting quality content read by, and amplified to, a relevant audience is the oft overlooked second half of success. Facebook can be a content marketer's best friend for this challenge. For reach, relevance and amplification potential, Facebook is unrivaled.

  1. Reach: 1 in 6 mobile minutes on planet earth is somebody reading something on Facebook.
  2. Relevance: Facebook is a lean mean interest and demo targeting machine. There is no online or offline media that owns as much juicy interest and demographic information on its audience and certainly no media has allowed advertisers to utilise this information as effectively as Facebook has.
  3. Amplification: Facebook is literally built to encourage sharing. Here's the first 10 words from their mission statement: "Facebook's mission is to give people the power to share…", Enough said!

Because of these three digital marketing truths, if a content marketer gets their paid promotion* right on Facebook, the battle for eyeballs and amplification is already won.

For this reason it's crucial that content marketers keep a close eye on Facebook advertising innovations and seek out ways to use them in new and creative ways.

In this post I will share with you eight ways we've hacked a new Facebook ad format to deliver content marketing success.

Multi-Product Ads (MPAs)

In 2014, Facebook unveiled multi-product ads (MPAs) for US advertisers, we got them in Europe earlier this year. They allow retailers to show multiple products in a carousel-type ad unit.

They look like this:

iClothing Multi Product Ad

If the user clicks on the featured product, they are guided directly to the landing page for that specific product, from where they can make a purchase.

You could say MPAs are Facebook's answer to Google Shopping.

Facebook's mistake is a content marketer's gain

I believe Facebook has misunderstood how people want to use their social network and the transaction-focused format is OK at best for selling products. People aren't really on Facebook to hit the "buy now" button. I'm a daily Facebook user and I can't recall a time this year where I have gone directly from Facebook to an e-commerce website and transacted. Can you remember a recent time when you did?

So, this isn't an innovation that removes a layer of friction from something that we are all doing online already (as the most effective innovations do). Instead, it's a bit of a "hit and hope" that, by providing this functionality, Facebook would encourage people to try to buy online in a way they never have before.

The Wolfgang crew felt the MPA format would be much more useful to marketers and users if they were leveraging Facebook for the behaviour we all demonstrate on the platform every day, guiding users to relevant content. We attempted to see if Facebook Ads Manager would accept MPAs promoting content rather than products. We plugged in the images, copy and landing pages, hit "place order", and lo and behold the ads became active. We're happy to say that the engagement rates, and more importantly the amplification rates, are fantastic!

Multi-Content Ads

We've re-invented the MPA format for multi-advertisers in multi-ways, eight ways to be exact! Here's eight MPA Hacks that have worked well for us. All eight hacks use the MPA format to promote content rather than promote products.

Hack #1: Multi-Package Ads

Our first variation wasn't a million miles away from multi-product ads; we were promoting the various packages offered by a travel operator.

By looking at the number of likes, comments, and shares (in blue below the ads) you can see the ads were a hit with Facebook users and they earned lots of free engagement and amplification.

NB: If you have selected "clicks to website" as your advertising objective, all those likes, comments and shares are free!

Independent Travel Multi Product Ad

The ad sparked plenty of conversation amongst Facebook friends in the comments section.

Comments on a Facebook MPA

Hack #2: Multi-Offer Ads

Everybody knows the Internet loves a bargain. So we decided to try another variation moving away from specific packages, focusing instead on deals for a different travel operator.

Here's how the ads looked:

These ads got valuable amplification beyond the share. In the comments section, you can see people tagging specific friends. This led to the MPAs receiving further amplification, and a very targeted and personalised form of amplification to boot.

Abbey Travel Facebook Ad Comments

Word of mouth referrals have been a trader's best friend since the stone age. These "personalised" word of mouth referrals en masse are a powerful marketing proposition. It's worth mentioning again that those engagements are free!

Hack #3: Multi-Locations Ads

Putting the Lo in SOLOMO.

This multi-product feed ad was hacked to promote numerous locations of a waterpark. "Where to go?" is among the first questions somebody asks when researching a holiday. In creating this top of funnel content, we can communicate with our target audience at the very beginning of their research process. A simple truth of digital marketing is: the more interactions you have with your target market on their journey to purchase, the more likely they are to seal the deal with you when it comes time to hit the "buy now" button. Starting your relationship early gives you an advantage over those competitors who are hanging around the bottom of the purchase funnel hoping to make a quick and easy conversion.

Abbey Travel SplashWorld Facebook MPA

What was surprising here, was that because we expected to reach people at the very beginning of their research journey, we expected the booking enquiries to be some time away. What actually happened was these ads sparked an enquiry frenzy as Facebook users could see other people enquiring and the holidays selling out in real time.

Abbey Travel comments and replies

In fact nearly all of the 35 comments on this ad were booking enquiries. This means what we were measuring as an "engagement" was actually a cold hard "conversion"! You don't need me to tell you a booking enquiry is far closer to the money than a Facebook like.

The three examples outlined so far are for travel companies. Travel is a great fit for Facebook as it sits naturally in the Facebook feed, my Facebook feed is full of envy-inducing friends' holiday pictures right now. Another interesting reason why travel is a great fit for Facebook ads is because typically there are multiple parties to a travel purchase. What happened here is the comments section actually became a very visible and measurable forum for discussion between friends and family before becoming a stampede inducing medium of enquiry.

So, stepping outside of the travel industry, how do other industries fare with hacked MPAs?

Hack #3a: Multi-Location Ads (combined with location targeting)

Location, location, location. For a property listings website, we applied location targeting and repeated our Multi-Location Ad format to advertise properties for sale to people in and around that location.

Hack #4: Multi-Big Content Ad

"The future of big content is multi platform"
– Cyrus Shepard

The same property website had produced a report and an accompanying infographic to provide their audience with unique and up-to-the-minute market information via their blog. We used the MPA format to promote the report, the infographic and the search rentals page of the website. This brought their big content piece to a larger audience via a new platform.

Rental Report Multi Product Ad

Hack #5: Multi-Episode Ad

This MPA hack was for an online TV player. As you can see we advertised the most recent episodes of a TV show set in a fictional Dublin police station, Red Rock.

Engagement was high, opinion was divided.

TV3s Red Rock viewer feedback

LOL.

Hack #6: Multi-People Ads

In the cosmetic surgery world, past patients' stories are valuable marketing material. Particularly when the past patients are celebrities. We recycled some previously published stories from celebrity patients using multi-people ads and targeted them to a very specific audience.

Avoca Clinic Multi People Ads

Hack #7: Multi-UGC Ads

Have you witnessed the power of user generated content (UGC) in your marketing yet? We've found interaction rates with authentic UGC images can be up to 10 fold of those of the usual stylised images. In order to encourage further UGC, we posted a number of customer's images in our Multi-UGC Ads.

The CTR on the above ads was 6% (2% is the average CTR for Facebook News feed ads according to our study). Strong CTRs earn you more traffic for your budget. Facebook's relevancy score lowers your CPC as your CTR increases.

When it comes to the conversion, UGC is a power player, we've learned that "customers attracting new customers" is a powerful acquisition tool.

Hack #8: Target past customers for amplification

"Who will support and amplify this content and why?"
– Rand Fishkin

Your happy customers Rand, that's the who and the why! Check out these Multi-Package Ads targeted to past customers via custom audiences. The Camino walkers have already told all their friends about their great trip, now allow them to share their great experiences on Facebook and connect the tour operator with their Facebook friends via a valuable word of mouth referral. Just look at the ratio of share:likes and shares:comments. Astonishingly sharable ads!

Camino Ways Mulit Product Ads

Targeting past converters in an intelligent manner is a super smart way to find an audience ready to share your content.

How will hacking Multi-Product Ads work for you?

People don't share ads, but they do share great content. So why not hack MPAs to promote your content and reap the rewards of the world's greatest content sharing machine: Facebook.

MPAs allow you to tell a richer story by allowing you to promote multiple pieces of content simultaneously. So consider which pieces of content you have that will work well as "content bundles" and who the relevant audience for each "content bundle" is.

As Hack #8 above illustrates, the big wins come when you match a smart use of the format with the clever and relevant targeting Facebook allows. We're massive fans of custom audiences so if you aren't sure where to start, I'd suggest starting there.

So ponder your upcoming content pieces, consider your older content you'd like to breathe some new life into and perhaps you could become a Facebook Ads Hacker.

I'd love to hear about your ideas for turning Multi-Product Ads into Multi-Content Ads in the comments section below.

We could even take the conversation offline at Mozcon!

Happy hacking.


*Yes I did say paid promotion, it's no secret that Facebook's organic reach continues to dwindle. The cold commercial reality is you need to pay to play on FB. The good news is that if you select 'website clicks' as your objective you only pay for website traffic and engagement while amplification by likes, comments, and shares are free! Those website clicks you pay for are typically substantially cheaper than Adwords, Taboola, Outbrain, Twitter or LinkedIn. How does it compare to display? It doesn't. Paying for clicks is always preferable to paying for impressions. If you are spending money on display advertising I'd urge you to fling a few spondoolas towards Facebook ads and compare results. You will be pleasantly surprised.


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Seth's Blog : Unreasonable

Unreasonable

It's fascinating to note that everyone else is consistently more unreasonable in their demands and their policies and their views than we are.

I know the math is impossible, but we certainly act as though the other person is the unreasonable one, no matter which side of the table he sits on.

       

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marți, 7 iulie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


"UberCab" vs. Al Gore's $90 Trillion Plan to Rid World of Cars: Uber CEO Asks Tesla for 500,000 Autonomous Cars in 2020; Peak Cars?

Posted: 07 Jul 2015 05:50 PM PDT

A few days ago I received an email from yet another naysayer telling me that I was wrong about self-driving cars and we would not see them in his lifetime.

I don't recall precisely how I answered, but it was along the lines of "Are you planning on dying in five years?"

"UberCab" Coming

Today I received an email from Richard, a more enlightened reader who writes ...
Hello Mish,

Your predictions for self-driving cars and trucks seems to be on track. Looks like interesting times ahead as interest builds.

Richard
Uber CEO Wants 500,000 Autonomous Cars In 2020

Richard emailed a link to the Green Car Reports article Uber CEO To Tesla: Sell Me Half A Million Autonomous Electric Cars In 2020.
Tesla Motors is one of several automakers planning to put a self-driving car on sale sometime in the next few years, and it already seems to have at least one big fan.

This person isn't a celebrity owner or safety advocate, but rather the CEO of preeminent ride-sharing company Uber.

If Tesla can build a fully-autonomous car by 2020, Uber CEO Travis Kalanick says his company would it. In fact, he'd buy every one Tesla builds.

Yes, all 500,000 electric cars Tesla expects to produce in that year, according to Forbes (via Charged EVs).

That boast comes not directly from Kalanick himself, but from Steve Jurvetson--an early Tesla investor and board member.

Jurvetson relayed what he claimed were Kalanick's remarks at the recent Top 10 Tech Trends dinner, hosted by the Churchill Club.

Tesla CEO Elon Musk previously said he expects the company to build 500,000 cars per year by 2020.

That prediction was reconfirmed by Tesla chief technical officer JB Straubel at a conference in Washington, D.C. last month.
Fact or Fantasy?

Green Car Reports linked to a Forbes article in which Five Top VCs Predict The Future.

The CEOs were Jenny Lee of GGV Capital, Steve Jurvetson of Draper Fisher Jurvetson, Rebecca Lynn of Canvas Venture Fund, Bill Gurley of Benchmark Partners and Shervin Pishevar of Sherpa Ventures.

Two of the 10 CEO  predictions were about cars.
5. End of the Auto Nation - Bill Gurley

The U.S. designed cities around individual car ownership, and the result has been inefficiency, deaths and pollution. U.S. cars are on average idle 96% of the time, which is about $15 trillion in capital assets not used, said Gurley, an Uber investor.

Gurley: "We may have hit what's called peak car. Kids aren't showing up on their 16th birthday to get a driver's license. The smartphone is more of a social status than a car is."

9. Rise of Robocars (the audience-voted winner of the night) - Steve Jurvetson

Jurvetson: "For those of us who have a chance to be in one, you'll never go back. I believe they are already safer than my parents." Initially they will run at speeds of 25 mph or less in urban settings, he said.

Jurvetson said Uber CEO Travis Kalanick told him that if Tesla cars are autonomous by 2020, Kalanick wants to buy all 500,000 that are expected to be produced.
Fact or Fantasy?

Whether or not Tesla builds a half-million self-driving cars for Uber is not the point. Nor is a precise date of 2020 important.

What's important is the trend. And that trend is both fast and unmistakable. Self-driving cars are coming, far sooner than most predictions suggest. And they will be far safer, with more features.

Drivers Not Wanted

The need for taxi driver, limo drivers, bus drivers, train drivers, and long-haul truck drivers will nearly vanish within 10 years, and five or six would not surprise me at all.

The pace of technological advancement is breathtaking.

Uber Banned

As an important side note, Uber is banned in so many places I lost track. At one point I was accumulating all the places the company was banned.

BusinessInsider reports Here's Everywhere Uber is Banned Around the World, then goes on to ask "Will Uber's $40 billion valuation be enough to cover its legal fees?"



That map and valuation is as of April 8, 2015. Since then it has been banned in more places.

Here is a link to a Google search for "Uber Banned".

As is often the case, France is on the forefront of idiotic reactions to technology to preserve over-paying and the French way of life.

Uber in France

Two days ago ComputerWorld reported Uber throws in the towel in battle with French taxi drivers.
Uber Technologies is suspending its UberPop service in France, after a bitter fight with taxi drivers who say the service breaks the law.

The company plans to remove access to UberPop from its mobile app in France from 8 p.m. local time Friday, it said in a blog post.

Uber has been disrupting transportation markets around the world -- nowhere more so than in Paris, where taxi drivers recently blocked highways and airport entrances with burning tires in protest at the company's behavior. The protests also reportedly included attacks on Uber drivers, their vehicles and passengers. The taxi drivers are angry because, they say, UberPop breaches a new law on hiring vehicles with a driver that entered effect on Jan. 1.
The Market, Not Politicians, Rule

Inquiring minds may be wondering "How can Uber exist with political forces aligned against it?"

The answer is simple: Uber provides a service that millions of people want!

I receive emails all the time about Uber being banned, about drivers being unresponsive, about drivers not knowing where they are going, and of course about the idiotic reactions in France.

But as long as people want Uber, it will not go away. And by 2020 (more or less), there will not be any discourteous Uber drivers, bad drivers, or unresponsive drivers because there will not be any Uber drivers at all.

Al Gore to the rescue, NOT.

Al Gore's $90 Trillion Plan to Rid Cities of Cars

As preposterous as it may seem, Al Gore has a Plan to Spend $90 Trillion to Get Rid of Cars in Cities.

"Former Vice President Al Gore and Mexican President Felipe Calderon proposed a $90 trillion plan to redesign every city on earth so that motor vehicles would become obsolete due to more dense populations."

Never underestimate the stupidity of politicians and their ridiculously expensive solutions to non-problems that the free market will take care of on its own.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Always Another "Last Chance", Until There Isn't; Myth of the Open Door; Last Chance for Whom?

Posted: 07 Jul 2015 02:39 PM PDT

For at least a week I have seen numerous headlines and articles purportedly offering Greece a "last chance".

We saw the same headlines before both of the prior Greek bailouts.

Thus, and in spite of the fact we are weeks past the alleged midnight expiration of a deal, it's no surprise to see this headline today: Greece Faces Last Chance to Stay in Euro as Cash Runs Out.
Greek Prime Minister Alexis Tsipras launched a desperate bid to win fresh aid from skeptical creditors at an emergency euro zone summit on Tuesday, before his country's banks run out of money.

But German Chancellor Angela Merkel said on arrival there was still no basis for reopening negotiations with Athens.

"It is not a matter of weeks but of a few days" to save Greece from collapse, Merkel told reporters.

[Hmmm. Apparently there are a few day's worth of last chances coming]

Merkel and French President Francois Hollande said after conferring on Monday in Paris that the door was still open to a deal to save Greece from plunging into economic turmoil and possibly having to ditch the euro.

Merkel, under pressure in Germany to cut Greece loose, made clear it was up to Tsipras to present convincing proposals after Athens spurned tax rises, spending cuts and pension and labor reforms that were on the table before its 240 billion euro ($262.7 billion) bailout expired last week.

Jeroen Dijsselbloem, chairman of the Eurogroup of currency zone finance ministers, said the ministers would hold a conference call on Wednesday to review a Greek request for a medium-term assistance program from the European Stability Mechanism bailout fund, due to be submitted within hours.

[If ESM or ELA is granted, there could be month's worth of last chances]

A Greek government official retorted: "Some are maintaining 'we don't have proposals'... Is it really that 'we don't have proposals' or is it that they don't like our proposals?"
New Offer Coming

Greece was given a "last chance" to produce an offer this morning to eurozone officials.

To the surprise of eurozone leaders, Greece showed up without a proposal. Nonetheless, Greece poised to offer new proposal for third bailout.
Greek negotiators stunned some eurozone finance ministers by arriving at their meeting without a revised economic reform proposal.

Asked why Greece had not brought fresh proposals to the summit on Tuesday,[Euclid Tsakalotos, the new Greek finance minister] said: "It is more complicated than that. We have a set of reforms and we are discussing on that basis."

"There is still no basis for negotiations," said Angela Merkel, the German chancellor. "I say it's not a matter of weeks but of a few days."

A Greek government spokesman said the plan verbally outlined by Mr Tsakalotos was the same as that sent to creditors on June 30 "with certain improvements". The June 30 plan conceded to many of the demands made by bailout monitors but was still considered insufficient.

Eurozone officials have said that in order to agree a new bailout programme, further reforms and savings would be needed on top of those demanded under its now expired bailout, given the recent deterioration in the economy. That led several to worry that Athens still had not come to grips with what it needed to do to win over sceptical colleagues.
Myth of the Open Door

Check out that last paragraph. The door is open, but for what?

Also note that Merkel said "There is still no basis for negotiations". What kind of door is that?

Clearly, the only open door is for complete capitulation by Greece, and then some. Eurozone ministers now want additional reforms from Greece.

Until Greece defaults on the ECB, this will be the state of affairs.

Eurozone Exposure



Source of the table is Barclays, via email. I have no link.

Upon default, Germany will learn that its portion of the bill is about €92 billion, France €70 billion, Spain €42 billion, and Italy €62 billion.

Those numbers are from end of April and are undoubtedly higher today thanks to Target2 and cash under the mattress liabilities of banks.

Where is Spain going to come up with €42 billion or Italy €62 billion?

Questions Abound

  • Will the ECB simply print the money and hand it out in violation of rules?
  • How about setting the maturity 101 years into the future, effectively whitewashing the total?

Last Chance for Whom?

Looking at the above numbers, I have to ask, precisely: Who is the "last chance" really for?

The answer to that question explains why there has been "last chance" after "last chance" after "last chance".

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

940 Chinese Firms Halt Trading; China Allows Houses as Margin, Bans Use of Term "Equity Disaster"; Two Rules, Two Questions

Posted: 07 Jul 2015 11:00 AM PDT

Two Rules

  1. Every bubble eventually bursts
  2. The bigger the bubble the bigger the bust

Central banks globally have blown the biggest bubble ever in the wake of the 2008 crash. We have only just begun to see the carnage that is coming.

That carnage started in China and it's going to spread.

Two Questions

  1. How fast?
  2. Where Next?

The two pertinent questions now are "How fast?" and "Where next?"

I don't have the answer to those questions. Nor does anyone else. What I do know is attempts to stop bubbles from bursting don't work. Indeed, they only make matters worse.

China's Market and Policy Timeline

Bloomberg has an interesting graph of China's Market and Policy Timeline.



click on chart for sharper image

In an absurd attempt to maintain GDP Growth estimates that no one in their right mind believes possible, here are some key actions that China took.

Key China Actions

  1. December 28: Rule tweak gives banks more room to lend
  2. January 22: Bank of China taps reverse repos to target demand
  3. February 4: Bank of China cuts reserve ration
  4. March 8: China announces trillion Yuan local government debt swap
  5. March 31: Survey shows average investor in rally did not finish high school
  6. April 15: GDP shows "only" 6.5% growth, a number below target
  7. April 19: China cuts RRR (Reserve Requirement Ratio) by 100 basis points
  8. June 10: Two trillion yuan (about $322 billion) debt swap frees funds for growth
  9. June 12: Shares peak
  10. July 5: China suspends IPOs, brokers launch "stabilization fund"

My favorite bullet point is number 5, March 31:  Survey shows average investor in rally did not finish high school.

940 Chinese Firms Halt Trading

The Financial Times reports Stocks Fall Despite Stabilization Efforts
Hundreds of Chinese companies have halted trading in their shares as Beijing struggles to insulate the economy from the country's steepest equity decline in more than two decades.

Another 173 firms listed in Shanghai and Shenzhen announced trading suspensions after the market closed on Tuesday, bringing the total to around 940, or more than a third of all listed firms on the two exchanges.

Beijing has taken steps to keep stocks on China's two main indices afloat, including direct purchases of large-cap companies, a halt to initial public offerings and a cut to trading fees. But so far its efforts have failed to staunch concerns.

Haitong Securities said late on Monday it would allocate Rmb15bn ($2.4bn) to tracker funds to help "maintain stable development" of the equity market. That followed a vow by 21 securities brokerages at the weekend to use their own capital to buy shares.
China Bans Use of Term "Equity Disaster"

On the absurd theory that if you don't talk about it, the problem does not exist, China's sensors stepped into the act.

"One local reporter, who did not want to be named, said the government had banned local media from using the terms 'equity disaster' and 'rescue the market' in their reports on the stock market."

In spite of this plunge, the Shenzhen index is still up about 36 per cent for the year. 

China Allows Houses as Margin

Margin speculation and loose money to spur growth is what's behind the bubble, but that does not stop idiot (no milder word will suffice) regulators from trying to stimulate margin.

Fortune has the details in China's Big, Misguided Stock Market Gamble.
The rout in China's frothy stock markets since mid-June has been painful, to say the least. Between its peak on June 12 and July 2, the Shanghai Composite Index, which includes China's largest companies, dropped 28%, wiping out $2.4 trillion in paper wealth.

Over the weekend, the People's Bank of China announced a plan to inject funds into a state-owned entity that lends to brokerage firms. The country's 21 brokerage firms also pledged 120 billion yuan to invest in stocks when the Shanghai Composite Index is below 4,500 (it closed at 3687 on July 2). Besides financing the bubble with new money, the Chinese government has suspended IPOs, cut trading fees, and relaxed requirements on margin loans (for example, Chinese retail investors can now use their apartments as collateral).

Unsurprisingly, the performance of the stock market has been made a barometer of the popularity of the current regime. The head of China Security Regulatory Commission not too long ago called the soaring market "a reform bull market," suggesting that investors were giving a vote of confidence in the leadership's promised reform programs.


We can see this mindset at work in China's management of two recent bubbles: the real estate market and local government debt. In addressing the real estate market bubble, Beijing has opted to keep insolvent developers alive by forcing their lenders to roll over the loans. Consequently, the glut of unsold inventory hangs over the real estate sector. Because there is such an excess in the supply of housing, it is unlikely that those zombie real estate developers will return to life and pay their creditors in full.

Beijing has used a similar recipe for shoring up its debt-laden local governments. After the bond market rejected Beijing's plan to float the debt issued by local governments earlier this year, Chinese leaders simply ordered state-owned banks to buy such debt, adding assets of dubious quality to their balance sheet.

Even after its recent plunge, Chinese stock prices are overvalued. The price-earnings (P/E) ratio of the Shanghai Composite Index is 23, compared with 12 for the Hong Kong's Hang Shen Index, on which many of the same Chinese firms are listed. The Shenzhen Composite Index, which has lost a third of its value, has an average P/E ratio of 50. (However, a hefty portion of the reported earnings of Chinese firms is "investment income," paper gains from their overvalued stock portfolios.) Efforts to support the market at high valuations are expensive and unlikely sustainable.

Beijing is trying to save the stock market bubble while three other bubbles have yet to deflate: real estate, local government debt, and manufacturing overcapacity. It's possible that these bubbles will feed into each other, amplifying distortions and raising the final bill to clean up the mess.
Effort to Prevent Losses Must Fail

Resistance is futile. Regardless of efforts taken, loss prevention must fail.

The explanation is simple: The losses have already occurred, they simply have not been fully realized.

The same applies to Chinese GDP, purportedly growing at 7-10% for decades. High growth in emerging markets for a few years is reasonable, but not decades on end.

Building entire cities where no one lives, malls where no one shops, trains that no one uses all add to GDP because of the ridiculous definition that says all government spending adds to GDP.

Factor in malinvestment, future write-downs, pollution cleanup costs, etc., and the Chinese economy is hardly growing at all. Coupled with loose money, those are the conditions in which bubbles form.

Global Equity Day-of-Reckoning Coming

Courtesy of the Fed and central bankers in general, a global equity day-of-reckoning is coming, and very few even see it.

In spite of all the messages you hear that "stocks are cheap", the fact remains stocks are not cheap.

Central banks have still not admitted their role in the Great Financial Crisis, and they have done it again.

It's too late to stop the carnage because the bubbles have already been blown. The open questions are as I stated at the top: "How Fast?" and "Where Next?"

No one has those answers, but huge pain is coming.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com