Credit Suisse’s CIO, John Woods, responded to Kyle Bass’s bearish case for Chinese collapse, suggesting the Chinese NPLs pales in comparison to what occurred 15 yrs ago and how the government may need to nationalize debt and write some of it down to deal with the situation. Clearly, the pace at which the Chinese government is drawing down their FX reserves, down from $4 trillion to $3.1 trillion over the past 12 months, they cannot bail everyone out.
Credit Suisse believes they’ll need to devalue the yuan, significantly, down to $6.80-$7.00, to better deal with the looming debt kerfuffle they find themselves in.
Current CNY/USD cross stands at $6.57.
We are at full iBankHedge/ZeroCoin level. Go Long?
I am long SPY.
Did oil prices just drop to an all-time low since the 90s? I’m seeing $26.75/bar.
Oil goes to $9. You heard it here first.
I will be Braved-Flaps if so.
Give me 9, and then see you back at 101.
If schiff is right, that 9 really equals 150
Debt kerfuffle? Homo?
So which is the problem I’m confused. Nikkei? Oil/Gas? Maniac Rates? Widening spreads? Now China? Which one is the real problem they can’t all be…
I thought you were a Bear. Aren’t you supposed to believe that the world is in the midst of dozens of insoluble economic problems that will bring the Dow down to zero?
Here is Fly’s latest video from Devil Dog, the 2nd video on this page, to remind you of how this is done.
http://ibankcoin.com/flyblog/2016/02/03/the-rationale-behind-negative-rates/
Frog, get a friend to sign up and comment often as “Pig”
Maybe fly has a discount if you get a 2nd friend to be “Bear”
[ that was extrasensory overblown outrageous Sarcasm
being confused about systemic breakdown concern areas ]
No one wants to be the Bear here except you. So you’ve got that role to yourself.
Just trying to start a Muppets section. love the muppets
China will unquestionably devalue their currency. However, it could go the other way first, as the early crop of shorts is inevitably crushed. Same as it ever was.
Ultrabond futures at 175! Yen at 111. Gold and EUR still trending up. Minsky indeed.
let’s go down 450/50 and 7% on crude because it is thursday