Re: China banks stop lending? Hello, Oblivion!

On Sat, 27 Sep 2008 18:18:46 -0400, Allan Smith posted:

Ron,

I hope Allan sees this to comment.

I've been in "northern Virginia" for the week, and have been both busy, and
rather deliberately avoiding the economics, for reasons not entirely my own.

As for China, they ususally cut off credit around Oct 31. The reason is the
enormity of their economy, and the time it takes them to get information.
Loan-origination inside China comes to a virtual halt on Oct 31, then
resumes on Jan 1 under whatever 'tweaks' the govenment thinks necessary to
apply to manage the growth of debt in China. However, selective targeting is
_not_ typically part of that equation.

There have been rumblings of discontent coming from our global creditors,
particularly in Asia, for some time now. I'd not be surprised to find the
grumblings find their way into concrete action. It could be considered a
"warning".

Really bad timing to try and sell Treasuries in large numbers like 700
billion.

The biggest bidder isn't at the auction.

Allan

Thanks for the skinny, Allan.
--
Injustice is relatively easy to bear; what sting is justice.
H. L. Mencken
.

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