From Zero Hedge we get a "Full summary of Chinese actions to prevent an all-out economic collapse." From scrutinizing overseas transfers, to curbing the supply of the yuan abroad, to freezing outbound investments, to restricting foreign-exchange purchases and the suspension of foreign bank transactions, it's clear that China is beginning to lose control. The Chinese are even warning bank executives that their jobs may be on the line if they can't control risk and the evasion of capital controls by market players.
As I pointed out elsewhere, they should have thought about this long before they allowed market players to go nuts, especially borrowing money they couldn't back with assets.
In a few words the Chinese are desperately trying to plug financial holes that are starting to overwhelm their economy, and are also part of a larger structural problem with the global economy.
Stay tuned.
- Mark
As I pointed out elsewhere, they should have thought about this long before they allowed market players to go nuts, especially borrowing money they couldn't back with assets.
In a few words the Chinese are desperately trying to plug financial holes that are starting to overwhelm their economy, and are also part of a larger structural problem with the global economy.
Stay tuned.
- Mark
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