The market news piece of the day is that the S&P 500 has (YTD) outperformed the once explosive BRICs (Brazil, Russia, India and China). Folks everywhere are saying “See, it’s not so bad” and touting the fact that the U.S. is the “least loser” etc. etc. I don’t think that is the real story here.
As the Washington Post notes, the Olympics may be fantastically well choreographed, but it doesn’t really matter if nobody shows up:
Two weeks after announcing they had sold every one of the record 6.8 million tickets offered for the Games, Olympics officials expressed dismay at the large numbers of empty seats at nearly every event and the lack of pedestrian traffic throughout the park, the 2,800-acre centerpiece of the competition.
The Chinese organizing contingent is “baffled” by this? They’ve got to be kidding – look at their stock market…
Chart compliments of Bloomberg
Just a few months ago, the Chinese were trying to stem the bleeding by promoting more equity market speculation. From the looks of the chart, that didn’t get them very far.
Clue: When equity markets tumble, people lose money. When they lose money, they stay in. And (I guess) order Chinese food.