Goldman Takes Spin To New Highs: China Rate Hike Should Be "Welcomed By The Market"

Tyler Durden's picture

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hugovanderbubble's picture

Tyler and ZH members


Flash Crash in Europe


Please switch off computers...algos...and devils...


Spanish banks close to massive default


Damn, and it was looking like we were in for another ndx 100 run like the one from the entire decade of the 90's. I would'nt let a little crash or two bother me, that just means it buy the fucking dip time.

malikai's picture

I read that in bloomberg last night before bed. I have to wonder. Is the news better in China or the "West" these days? It seems tough to differentiate which department of truth is more truthier.

squexx's picture

Allrrriiiggghhhttttt!!!!! A chance to buy the fucking dip! This has got to be bullish for gold plated tungsten!

Temporalist's picture
Pimco Says U.S. Yields ‘Fully Reflect’ Growth Outlook

"Pacific Investment Management Co., which runs the world’s biggest bond fund, said Treasury yields have priced in forecasts for faster economic growth after surging to a seven-month high earlier in December.

“Changes in U.S. interest rates and bond prices over the last four or five weeks, in our opinion, fully reflect the upgrade in U.S. growth prospects for 2011,” Saumil Parikh, a portfolio manager for the Newport Beach, California, company wrote on Pimco’s website."


Kool-aid drinking is prevalent to end 2010.

One_Eyed_Pony's picture

Oh No's... Goldman is outsourcing their Market Manipulation SW to the EU?  Yeah, Panda Rate Hikes for all those 'ghost cities' behind the bamboo curtain.

Key in that movie AIRPLANE, when they are just about to land & the ATC guy pulls the plug on the runway lights and says, "Just Kidding" ;)


Sequel coming SHORTly.

SheHunter's picture

And for your viewing pleasure.  The upcoming POMO week:

Oh regional Indian's picture

Actually, if one really thinks about it, raising rates is actually good for the economy, in a bitter medicine way.

Why would that statement be derided here of all places, this bastion of let's-fix-the-system?

The US can/should/has to raise rates too. Sooner rather than later, or ZIRP just goes on to prove, every day, that the market is nothing but a massive joke.

I had a hard time getting my head around it, but once I understood the falling interest rate thesis of tjhe good hungarian gold doctor, whose name slips my mind, it, as in some things, became clear.

Falling interest rates are poison for "good" investment and heaven for mal-investment. Look around and mal-investment abounds, eh?

Worthy of a thought/ponder.


NotApplicable's picture

I believe you're referring to Prof. Antal Fekete.
His thesis is that neither wildly falling nor rising rates are beneficial to society. The preference is for a stable environment where one can plan for the future. Fluxuating rates means someone has encurred a loss by lending too low, or borrowing too high, and loses capital relative to other market actors who did not make such an error.

Oh regional Indian's picture

Thanks NA, Prof. Fekete it is and you've paraphrased his thesis well.

His particular example of post Vlocker slide in real interest rates is what caught my mind.


lamont cranston's picture

Hell, let's just arbitrarily set prime at 10% right now and watch the economy BOOM!!!

Yeah, sure. Who taught this woman Econ 101 - Captain Peter Peachfuzz? Chumley The Walrus? Ben Bernanke?

Wheatman's picture

This crap from Goldman is moronic. I can't wait for these idiots to go bankrupt. The only problem is that they are loading up on gold to hedge against f^&%wit  analysists they employ.

DaveyJones's picture

their lines are so idiotic, they should write speeches for our politicians. Oh wait.

Bubbles...bubbles everywhere's picture

This spin is really getting out of control. I wouldn't be surprised if very soon we started reading things like "Our dear leader Barack Obama" in the WSJ.

DaveyJones's picture

"when all else fails, make stuff up"  - Actually, I believe the Goldman creed does not limit dishonesty to disappointment 

TexDenim's picture

‘Hibernate for winter, re-awaken for spring’

Who is this Helen Zhu chick? A Confucius clone? Or is this just a pseudonym for Jan Hatzius?

knukles's picture

T'is a tale of a fellow who once wanted so bad to be a senior partner at GSAM that he didn't believe in anything but himself as he sat on the right hand of God Almighty, Maker of Heaven and Earth.  Mortals saw through him.  Poor chap, little did he know he never even had a chance for the job.  Too bad.  Probably'd of fit right in.

huggy_in_london's picture

why the fuck does anyone listen to any of these idiot analysts who have NEVER TRADED A BEAN in their lives.  The only thing people like her and the jim o'neals of the world trade are their careers.  total utter jokes.

D-Falt's picture

Who gives a flying kfuc about "The market?"

This should be welcomed by hard-working Chinese who try to put money in the bank.  It's genuine shame our Fed won't do likewise. 

The US economy will not be rebuilt by JP Morgan or BOA.  We get well when millions of small, household savers get return on minimum-risk portfolios.  That's the only road that allows us to climb back from Hell.