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Chinese Banks: "An Accident Waiting to Happen"
naked capitalism —
... it as a sign of imminent recovery, appearances are deceiving. First, the government set targets, so loans had to be made, whether they made sense or not. Michael Pettis has reported some transactions were shams to meet the mandated goals. About 1/3 of the proceeds were estimated to go to the stock market, hardly a productive use. And the banking aurhorities themselves were recently reported to be trying to curtail loan growth, a confusing signal. Ambrose Evans-Pritchard is even more dour, thanks to the reading a less than cheery reports from Fitch: China's ...
Here We Go Again
Bear Mountain Bull —
... seeing it as a sign of imminent recovery, appearances are deceiving. First, the government set targets, so loans had to be made, whether they made sense or not. Michael Pettis has reported some transactions were shams to meet the mandated goals. About 1/3 of the proceeds were estimated to go to the stock market, hardly a productive use. And the banking aurhorities themselves were recently reported to be trying to curtail loan growth, a confusing signal. Ambrose Evans-Pritchard is even more dour , thanks to the reading a less than cheery reports from Fitch: China’s banks are ...
Tuesday morning links
The Mess That Greenspan Made —
... U.S. - Bloomberg • Inflationary Pressures Are A Legitimate Concern - Technical Take • Economy prompts Salvation Army’s first summer fundraiser - Bizjournals • Wage Deflation in our Midst - Pragamatic Capitalist • Does USA 2009 = Argentina 2001? - iTulip INTERNATIONAL • British Economy Suffers Worst Drop in 50 Years - NY Times • China’s present growth story is built on malinvestment - Credit Writedowns • China's banks are an accident waiting to happen to every one of us - Telegraph • AIG ...
Lunchtime Links (June 30, 2009)
The Daily Bail —
... With Molestation of His Adopted Son
Sears to Let Jobless Stop Payments. Keep Appliances
Rules May Limit Cash For Clunkers
$235 Billion in CMBS ABout to Get Chopped
Foreclosure Short Sales Now Come with a Heavy Cost
For Modest Earners, Help For Student Loans
Duck Cell Phone Ringtone Interrupts Obama News Conference
Computer Failures Probed in Air France Airbus A-330 Crash
Chinese Banks Are A Looming Disaster
Just getting started...more added every 5 ...
Words from the (investment) wise July 5, 2009
The Big Picture —
... “Two facts stand out about China’s green shoots. While the Shanghai composite index is up 70% since November, Chinese imports are down 25% from a year ago. China is still draining real stimulus from the global economy.
“If the world’s biggest surplus state ($400 billion) is too structurally deformed to help offset the demand shock as Western debtors retrench, we are trapped in a long deflation slump.”
Source: Ambrose Evans-Pritchard, Telegraph, June 28, 2009.
Financial Times: Putin urges banks to boost ...
