Tuesday, March 25, 2014

CHINA'S MINSKY MOMENT HAS ARRIVED, EXCEPT IT HASN'T: here's what you need to know


A few more newsbits, hot off the presses:


FT beyond brics - default risks surge at Chinese steel mills. Here's what you should pay attention to:
Hamilton said debt defaults in the steel industry are a distinct likelihood, given that Beijing is “trying to change the mindset” so that at least some of those companies that deserve to fail do fail.
100% true. This is simply managed deleveraging and repricing of risk from a government that manages everything, including prices. Can it get out of hand? Sure, but do you think the government is stupid enough to let it get out of hand? Have you seen any China charts recently?

BI - Everyone's freaked out that China's Minsky Moment has arrived, and by that we mean that we interviewed an expert who says it hasn't. Another misleading headline from Business Blindsider.

FT beyond brics - clandestine bookies tip Modi. But as the article notes, things can change by the time voting begins. Anyway, I'm surprised that gold isn't still bullish in the runup to a Modi victory, given how much white people should think that a Modi victory can change the supply-demand equation for gold.

Daniel Drezner - on sanctioning Russia. It won't get Russia out of Crimea because Pooty has already changed the facts on the ground.





1 comment:

  1. You see Business Insider has hired Anthony Weiner as a monthly columnist.

    Weiner...column....herrrherrrrr

    ReplyDelete