Found a couple of things I wanted to pass along. (Both from Bloomberg)br /br /br /1) a href="http://www.bloomberg.com/apps/news?pid=20603037amp;sid=a.pZggcuVEp8"Chinese Stocks to Recover From Plunge, Fisher Says/a.br /br /blockquoteChinese a href="http://www.bloomberg.com/apps/quote?ticker=SHCOMP%3AIND" onmouseover="return escape( popwQuoteShort( this, 'SHCOMP:IND' ))"stocks/a will recover from their steepest drop since November and end the year higher as speculation that the government will limit bank loans is unfounded, billionaire investor a href="http://search.bloomberg.com/search?q=Kenneth+Fisheramp;site=wnewsamp;client=wnewsamp;proxystylesheet=wnewsamp;output=xml_no_dtdamp;ie=UTF-8amp;oe=UTF-8amp;filter=pamp;getfields=wnnisamp;sort=date:D:S:d1" onmouseover="return escape( popwSearchNews( this ))"Kenneth Fisher/a said. pThe nation’s economy is “gangbusters compared to the rest of the world, why would they try to kick that?” said Fisher, who has about $900 million invested in Chinese shares among the $28 billion he manages as chief executive officer of Fisher Investments Inc. in Woodside, California. “They have zero incentive” to curb lending, he said. /p/blockquotepbr //ppZero incentive? How about the incentive to avert a massive ...

by James Hamilton Could the phenomenal growth train get derailed? I remember my colleague Clive Granger telling me over a year ago about the conversations he had with people when traveling China. Everyone he spoke with seemed to believe that (1) the Chinese stock market was at that time experiencing a bubble that was going to burst, and (2) the crash would not come until after the 2008 Olympics. Clive expressed amusement that no one seemed to have worked backwards from this presumed equilibrium-- if you know the market is going to crash in August 2008, anybody with any sense would sell in July. And if there's heavy selling volume in July, the market's heading down, not up at that point, so the logical thing to do is to get out in June. But if the crash is going to begin in June, then what ...