China’s an Accident Waiting to Happen: Darda

[Halcyon]

China looks like an accident waiting to happen, in our view. Chinese policymakers have decided to broaden the base of financial institutions required to comply with 21.5% reserve requirements, which will effectuate a further tightening of liquidity. A collapsing term structure of interest rates and a sharp slowing in both narrow and broad liquidity suggest this tightening process is well underway.

We would also point out that China’s EMBI debt spreads widened to 218 bps last week from a 2010 low of 26 bps. Although many believe China’s policymakers will simply “flip the switch back on” like they did with a massive monetized fiscal binge in 2009, we would suggest they cannot do so without creating further imbalances that will have to be unwound down the road.

The Federal Reserve was only able to manage one soft landing (1995) in nearly six decades of post-war monetary policymaking. Yet, somehow, many believe Chinese policymakers  – with much  cruder tools and a far less  sophisticated financial system  – will be able to unwind a decade-long liquidity and credit boom seamlessly. We wouldn’t count on it.

http://blogs.wsj.com/marketbeat/2011/08/29/chinas-an-accident-waiting-to-happen-darda/

[Dipadidu]

Jesus! 

[Hulkotron]

Fuck China.

[tbombz]

doesnt really suprise me, the ruling party is a bunch of dumbfucks

[240 is Back]

g

[jedibrat]

China looks like an accident waiting to happen, in our view. Chinese policymakers have decided to broaden the base of financial institutions required to comply with 21.5% reserve requirements, which will effectuate a further tightening of liquidity. A collapsing term structure of interest rates and a sharp slowing in both narrow and broad liquidity suggest this tightening process is well underway.

We would also point out that China’s EMBI debt spreads widened to 218 bps last week from a 2010 low of 26 bps. Although many believe China’s policymakers will simply “flip the switch back on” like they did with a massive monetized fiscal binge in 2009, we would suggest they cannot do so without creating further imbalances that will have to be unwound down the road.

The Federal Reserve was only able to manage one soft landing (1995) in nearly six decades of post-war monetary policymaking. Yet, somehow, many believe Chinese policymakers  – with much  cruder tools and a far less  sophisticated financial system  – will be able to unwind a decade-long liquidity and credit boom seamlessly. We wouldn’t count on it.

http://blogs.wsj.com/marketbeat/2011/08/29/chinas-an-accident-waiting-to-happen-darda/

The bludgeon is a crude but effective tool. China can continue to leverage export growth but is still largely at the mercy of US consumer spending regardless of the competency of their economic management.

[Roger Bacon]

g

Can someone please photoshop a giant african american dick over that corn dog?

I would, but I don't feel like looking at dicks today.

[Roger Bacon]

Don't drink any water

Took me like 10 minutes to get that!!! 

[Halcyon]

getbig is just one of many sites i broadcast on. 7 or 8 years ago this kind of information would've been analyzed and discussed. now it's just another hoola that generation nothingness doesn't know what to do with. sharks are jumping all over the place.

[pillowtalk]

getbig is just one of many sites i broadcast on. 7 or 8 years ago this kind of information would've been analyzed and discussed. now it's just another hoola that generation nothingness doesn't know what to do with. shark are jumping all over the place.

What do you expect from a bunch of yahoos, that are A. In denial & B. Praying that Western materialistic, capitalism, will be the party that never ends.
Fucking morons.

PT

[andreisdaman]

China looks like an accident waiting to happen, in our view. Chinese policymakers have decided to broaden the base of financial institutions required to comply with 21.5% reserve requirements, which will effectuate a further tightening of liquidity. A collapsing term structure of interest rates and a sharp slowing in both narrow and broad liquidity suggest this tightening process is well underway.

We would also point out that China’s EMBI debt spreads widened to 218 bps last week from a 2010 low of 26 bps. Although many believe China’s policymakers will simply “flip the switch back on” like they did with a massive monetized fiscal binge in 2009, we would suggest they cannot do so without creating further imbalances that will have to be unwound down the road.

The Federal Reserve was only able to manage one soft landing (1995) in nearly six decades of post-war monetary policymaking. Yet, somehow, many believe Chinese policymakers  – with much  cruder tools and a far less  sophisticated financial system  – will be able to unwind a decade-long liquidity and credit boom seamlessly. We wouldn’t count on it.

http://blogs.wsj.com/marketbeat/2011/08/29/chinas-an-accident-waiting-to-happen-darda/

what did he say???

[tbombz]

interesting article.

ive been saying it for years now, people worry too much about china and our debt with them. it is in their interest to protect our interests.

[jedibrat]

interesting article.

ive been saying it for years now, people worry too much about china and our debt with them. it is in their interest to protect our interests.

Well, you're essentially funding chinese education: the world's best education can now be found in Beijing and Shanghai and will produce a highly skilled workforce with a work ethic par excellence. Chinese domestic demand oustripped export demand in the last quarter which makes evident the shift away from manufacturing exports leading growth. When Wall Street is a ghost town, you'll understand the conceit at the heart of US materialism.