– The People’s Bank of China injected 50 billion yuan ($8.17 billion) into the financial system on Thursday after a cash squeeze pushed money-market rates to record highs, Bloomberg News reported, citing an official at a state-owned bank. The money was supplied to a single lender through short-term liquidity operations and more lenders were in talks with the central bank to obtain financing, the report said, citing Hao Hong, chief China strategist at Bank of Communications Co.
In an effort to save face and avoid national disgrace, the Chinese fraudsters have injected 50 billion yuan into the banking system to help loosen up credit.
As a result, Japanese losses have been stemmed and Asia markets are only going down, as opposed to crashing through the floor boards. The aussies are merely down 0.2%.
Both US and European futures are pointing to an increase of 0.45% at the open of trade.
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So the Chinese borrow a page from the Bernanke-Abe playbook.
I regret not holding DUST, especially with your commentary on the issues with the miners. Oh well.
Based on the housing prices here in SoCal, you’d think China had unlimited amounts of money.
I guess instead of learning from Kuroda and Bernanke they want to learn form themsleves… best of luck to them, they need it.
Perhaps it’s time for a Mr. Partridge blog update.
Well oh boy that was hard to predict. I suppose we were to believe that china was going to let its banking sector implode overnight.
If we’ve learned one thing in these last 5 years, its that systemic risks will be met with central bank action. It may be the safest bet in these horrible markets, up or down.
100% accurate. If you have the stomach, just buy the blood. They will NEVER EVER let it fall.
Now everyone is in the “QE” pot.
Next up more LTRO for Europe.
Rumor has it the assets that can be posted as collateral for Euro’s include… mortgages originated in the West Bank “no mans land” and pre 1984 Yugos.
Yugo
I guess the big question here is this move by the Chinese enough to cool things down….flash crash…or much more pain a cumin.
Great calls on the precious metals complex thus far. What would you have to see to get excited about gold/silver again?
We all know that this story will eventually end with the collapse of fiat currencies. The question is: how long will the ponzi scheme last? Ron Paul has been crying wolf for 30 years but it’s still going strong. 6 months? 1 year? 5 years? 10 years? Eventually gold and silver will reign supreme, but I might be as old as Ron Paul when it finally happens.
Keep dreaming of “the collapse”. Ron Paul will still be wrong 100 years after he’s dead.
The collapse will never happen.
Vivid video and amazon have created a “transitional currency” based on internet porn. (Internet porn is the US’s largest asset and industry. viz.)
Porncoins are a superior to gold because of their intrinsic store of value. The real value in porncoins is that there is a never ending supply of demand. (It is engrained in male DNA to want to procreate the species and with so many internet basement dwellers not having a wife or girlfriend. Masturbation is the only option.)
The fractional reserve sex system would work something like this.
1.) Every time new porn coins are issued a female coed, at a big state university, takes her top of in front of a web cam…thus fullfilling demand. She receives no pay. However, as an incentive she receives one half of a bip deducted from her student loan interest rate. Because of the constant demand for masturbation..banks can lever porn coins a zillion to 1.
That is until the college girls invert the yield curve for student loans and then the government owes them money because of the negative interest rate. The solution is to give them porncoins that can be exchanged for chocolate and high end fashion trinkets.
Larry Flint will be the next Fed Chairman.
Harmony and balance will be achieved.
Oh…and TM is gonna bounce on the Nikkei!
TM
Haha that was ridiculous… By funny.
One note: you make it sound as if married gents are getting laid all the time…not sure where you conjured that information.
Made beaver will be currency again too
The Chinese Beckham Stampede http://www.youtube.com/watch?feature=player_embedded&v=k5v1DiQXvLo
Uhm, note that the majority of people screaming (like the girls used to scream at M.J. concerts in the ’90s) are men (not that there is anything wrong with that)
Can 8 billion of burrito money save a global risk selloff? Would be epic if it could.
That Chinese lottery pic is the best.
Holy s%^** I just watched the recording of fast money… That was the most entertaining, insane first 10minutes ever… They were at each others throats screaming at each other.l. Hahahaha
I thought there was going to be murder on live TV. Good watch if you like to be stunned by the escalating tensions.
this is a bandaid that does nothing to address WHY this lending rate issue is occurring, which is that the underlying creditworthiness of the chinese banks is complete garbage. not that fundamentals have stopped a nice equity rally though so should be good for a bounce at least.
http://www.bloomberg.com/markets/stocks/futures/
Only means that markets might be up tomorrow…watch out for next week.
What markets? The nikkei is attempting a double bottom. The Spy best house horseshit sold to you trade is beyond due. Kind of hard to come to grips with the emerging mini crash tho.
Fly who to be bought 1st cree, deck, ffiv or nflx ? Hope you got some avnr 2 weeks ago. It will pull back a little here for couple of days. Atb, hk
Now if we continue to fall, what saves us from a Monday crash?
The Europeans are going to be selling as soon as we open.
The Market has seen its highs for the year!
Bought SPY calls before reading your post yesterday suggesting to not buy. Lucked out thanks to China.