Bank Of China Representative: "The Real Economic Crisis Is Just Starting"

Tyler Durden's picture

Interview with Zhu Min, Bank of China Vice President:

Q. Is overconfidence the biggest risk to the recovery?

A. It's not only overconfidence, it's overmyopic: Wall Street feels the crisis never happened. It seems to me the financial crisis is not over yet, but it has stabilized from a cliff drop. That's one thing. The real economic crisis is just starting.

(Fast forward to the last 40 seconds of the clip).

Here for the full clip.

h/t Jonis

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Uncle Festus's picture

Funny how you need to get the real poop on what is going on from the Chinese government. 

bonddude's picture

The US is stealing from future sales w/cash for clunkers and China is building roads and bridges.


What happened to shovel ready jobs? To many Sopranos gotta get their cut first. 

They steal from us everyday's picture

Obama never had shovel ready jobs.  It was a give away to special interests.


That is what the clueless masses got for their vote.

Anonymous's picture

yeah but you think McCain/Palin would have done any better?

AnonymousMonetarist's picture

'China’s economic rebound is unstable, unbalanced and not yet solid ...' -China’s Premier Wen Jiabao

'The potential risk is that a lot of liquidity goes to the asset market. So you see asset bubbles in commodities, stocks and real estate, not only in China, but everywhere.' -Bank of China Ltd. Vice President Zhu 

'It will not be too bad this year. Both China and America are addressing bubbles by creating more bubbles and we’re just taking advantage of that. So we can’t lose.” -Lou Jiwei, the chairman of the CIC, China’s sovereign wealth fund 

George the baby crusher's picture

Oh dear.... Me no think Lou Jiwei clever like Confucius.

jessiejune's picture

why you all think lou jiwei clever like confucius?
but i really have the oppose idea~~Flour Grinder

jessiejune's picture

why you all think lou jiwei clever like confucius?
but i really have the oppose idea~~Flour Grinder

deadhead's picture

...and the 10y yld just crossed to interesting.

Assetman's picture

Yeah... very astute observation, deadhead.

I'm really puzzled by the Treasury rally with the USD still in a weakening mode.

Anyone know what's going on here?

lizzy36's picture

( DJ ) 09/11 11:03AM *DJ Fed Buys Par Value of $2.793 Bln in Agency Securities ....

Just in time for skyrockets in flight.....afternoon delight

AN0NYM0US's picture

Hey lizzy - what do you think of HND given your comment on an earlier post re Nat Gas?



lizzy36's picture

unfortunately,  i cannot and will not comment on any particular product.



AN0NYM0US's picture

let me rephrase -  you do think that nat gas is going to roll over in the next few days? ( if I understood your comment from yesterday correctly) thanks

lizzy36's picture

rumor also has one of the largest hf players in the space squeezing the market and causing untold pain. given what their positions are rumored to be, this could continue until nattie hits $3.75/$3.80. 

there is nothing fundamental in the move, just one very smart player squeezing a very, very short market.

. . .'s picture

lizzy:  unfortunately,  i cannot and will not comment on any particular product.


Hah.  You'd comment on particular retail consumer goods and services.  Like if Krasting and Project Mayhem started arguing about different brands of Stevia products.

AN0NYM0US's picture

stevia = ? DNA mutations ?


Metabolically activated steviol, the aglycone of stevioside,
is mutagenic

bonddude's picture

Get outta here with that jive. A paper from 1985? Millions use that stuff with no negative effect. That's why coke, pepsi and cargill are targeting it as their new neutracutical replacement sweetener of the future.

Anonymous's picture

A paper from 2008 (doi:10.1016/j.fct.2008.05.002) claims they didn't find any mutagenic effect from steviol, and points to problems with that 1985 paper. Just FYI.

AN0NYM0US's picture

So on Monday Mr. President will be landing on the aircraft carrier deck, as it were, to declare victory in the financial crisis.


Someone posted here or somewhere the notion that with a victory declaration any subsequent turmoil in the markets will likely be assigned to some sort of external event. e.g. SwineFlu, Israel Iran etc...


(even though many believe that this so called victory is hollow and merely kicking the can down the road.)

bonddude's picture

Paul Tudor Jones recently opined that the swine flu will be a factor in a bigger market correction later this year. 

Project Mayhem's picture

That was me


I suggested the elites will want to blame the crash on something, anything really, so I am looking for some sort of event to occur, whether war, swine flu, dollar collapse -- whatever ... just something on which a crash can be blamed for foiling our wonderful 'recovery'.

AN0NYM0US's picture

so the President's big speech on Monday will be the 'full stop' marking the end of the financial crisis

bonddude's picture

If he blames Bush's deficit spending one more time I'm throwing a brick through my TV screen...

And then go out and buy a new flat screen to bolster retail.

economessed's picture

bonddude:  "And then go out and buy a new flat screen to bolster retail."  More Chinese stimulus?  F-dat.  TV's are the equivalent of syringes for herion addicts -- they deliver our fix.

Chuck the brick, toss the tv, and decide what you'll do with the 3 hours a day you used to spend in front of it!

bonddude's picture

Hey, it's in my office man. I can actually multi-task. Stimulus that.

D.O.D.'s picture

Studies have shown most people who think they can multi-task, are very bad at it.   I won't bother posting the source, no idea where I read it.  Believe it or not, focus is actually benificial, and multi-tasker is an NWO code word for SLAVE.

bonddude's picture

Ah, traders have been been doing it for years but I appreciate the opinion sans link.

bpj's picture

Get Tivo, download all the episodes of Cops with Tasers and life doesn't get much better.


Anonymous's picture

:-) ONE MORE TIME, ladies and gentlemen, it's BUSH'S DEFICIT SPENDING! (-: Why not just get one of those new big-screen Apple computers and play Hulu and Netflix on it?

Anonymous's picture

Should I be going long vaccine makers, particularly CSL Ltd. (Australian company that just published vaccine trial results = according to Yahoo Finance). I think I will just for the sheer gambling of it all.

The stock market is my new blackjack table

dot_bust's picture

That's what I believe. Being that the Obama Administration and the boobs on CNBC have gone so far out on a limb to declare that the economy is recovering, the only way they'll get off the hook is by using an external event. It's the sort of thing that's discussed in Naomi Klein's book, The Shock Doctrine.

If the Chinese reneg on the OTC derivatives contracts, the financial implosion would begin immediately. So, the banksters may try to pre-empt this with an event.


Mr. Anonymous's picture

Israel attacking Iran fits the bill quite nicely, as the timing is implicitly within the PTB's control.

"Sadly, the sinking of dozens of tankers by counter-striking Iranian forces and the subsequent skyrocketing of oil prices has derailed our economy's glorious recovery."

Anonymous's picture

kind of like when israel attacked the world trade center on 911 and then tried to blame it on some nonexistent man, called osama, or , you know, its those eveil muslims , stupid or etc. same game, different name. mossad, by way of deception, thou shall do war........

Anonymous's picture

+1 for Shock Doctrine. good book.

Anonymous's picture

Or maybe he will announce some sort of holiday for another quick-fix.

deadhead's picture

does this mean that the patent pending Obama short play is back?

Hephasteus's picture

The problem with victory declarations are those shoe throwers. LOL That would be totally hilarious if china or saudia arabia bombed the speech with hush puppies.

Pizza Delivery Man's picture


Can't remember if it was you or one of your contributors who had previously discussed this but I thought it was notable to bring up again.

Check out the chart. Not sure a comment is needed.^tnx;range=3m;compare=^gspc;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


madmax's picture

Equities up, treasuries up, gold up.

Dollar down, down, down.

Big money is fleeing the dollar for anything that might mitigate its descent.


Thoreau's picture

the chinese are becoming more & more conspicuously vocal about reality. i'll read between the lines, & will be expecting something "earthshaking" in the near. thanks for the heads-up, Min:|

SloSquez's picture

I knew there would a substantial reward for the great minds at GM...and why not?

Joanito's picture

Let's all say these words together, because several countries will haul us in front of the WTO very soon for this reason:  Government Protected Monopoly.  Ahhhh protectionism.... reminds me of the good ole great depression.

SloSquez's picture

I think "Monopoly" might be a bit of a stretch.  It implies you have/make something other people want.  Looks more like welfare to me, and well paid welfare at that.