Chinese Bank Bailed Out Through PBOC "Targeted Liquidity Operation" Amidst Liquidity Crunch

Tyler Durden's picture


It was only a matter of time before at least one Chinese bank (and then many more) needing to rollover overnight/short-term funding and unable to do so in an interbank market that is now completely frozen, had to be bailed out. Sure enough, according to Hao Hong, the chief China strategist at Bank of Communications Co., who cited unidentified industry sources, the People’s Bank of China used "targeted liquidity operations" to supply 50b yuan to a bank in China. Bloomberg reports that the overnight cash supplied was at 5.1%, while the 1-week at 5.4%. Hong added that more banks are in talks with PBOC to obtain funds amid a cash squeeze, as expected. The problem is that the PBOC can't continue targeted bail outs, and will sooner or later be forced into a broad liquidity providing move, which will unleash a repeat of the 2011 in China scenario, which did not have a very happy ending.

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Thu, 06/20/2013 - 07:26 | 3674561 Middle_Finger_Market
Middle_Finger_Market's picture

Its blowing up like I thought it would. 

Thu, 06/20/2013 - 07:30 | 3674568 GetZeeGold
GetZeeGold's picture



Now you tell us.

Thu, 06/20/2013 - 07:47 | 3674604 GetZeeGold
GetZeeGold's picture



Rip Sim Pickens......adios James Gandolfini. This isn't turning out to be a good day.


Major Kong rides the bomb.


Woke up this morning....


Thu, 06/20/2013 - 07:49 | 3674608 kliguy38
kliguy38's picture

All contrived and the real target is to destroy gold as a "safe haven" ....even the goldbugs don't realize how important the price of PAPER gold is to this ponzi.....getting very close now to a real meltdown for the ponzi.....all stops being pulled out....there is NO physical gold

Thu, 06/20/2013 - 07:51 | 3674610 eddiebe
eddiebe's picture

Really? There is no physical gold? Explain yourself!

Thu, 06/20/2013 - 07:55 | 3674618 kliguy38
kliguy38's picture

I'm German.....perhaps you have not heard we cannot get our gold from your banks for years

Thu, 06/20/2013 - 08:34 | 3674750 AmCockerSpaniel
AmCockerSpaniel's picture

Your Gold is physically still here. It is just that we (US) have rented and sold it to so many times, and to so many people that we can not get the ownership rolled back very quickly. Only in the US of A. You can trust our people, but not our government (it's not run by Americans these days).

Thu, 06/20/2013 - 10:09 | 3675076 MiltonFriedmans...
MiltonFriedmansNightmare's picture

Only in the US..and the City, where the rule book, if you can call it that, was written.

Thu, 06/20/2013 - 07:55 | 3674619 GetZeeGold
GetZeeGold's picture



How much physical gold do you have?

Thu, 06/20/2013 - 07:57 | 3674622 AmCockerSpaniel
AmCockerSpaniel's picture

He is just talking for himself. This is not a bad time to add some to ones physical.

Thu, 06/20/2013 - 07:31 | 3674571 swissaustrian
swissaustrian's picture

Exactly, central planning always fails.

Thu, 06/20/2013 - 07:27 | 3674562 q99x2
q99x2's picture

At this rate the Chinese TBTF banks could take over the Chinese Government like Goldman Sachs did in the west.

Thu, 06/20/2013 - 07:31 | 3674569 booboo
booboo's picture

"From this day forward Happy Endings must be paid for in blood"
Madam Chu Won Tu

Thu, 06/20/2013 - 07:30 | 3674570 Its Only Rock N Roll
Its Only Rock N Roll's picture

The "happy ending" costs an extra $20

Thu, 06/20/2013 - 07:32 | 3674575 Dr. Engali
Dr. Engali's picture

Hmmm maybe it would be a good idea if they had funded projects that would supply a cash flow instead of building empty cities. Maintenance costs are a bitch when there is no cash to pay for them.

Thu, 06/20/2013 - 10:24 | 3675113 thestarl
thestarl's picture

And half the shit they've built is so dodgy...standards fucking what standards.

Thu, 06/20/2013 - 07:33 | 3674577 Poor Grogman
Poor Grogman's picture

All those overseas investments will soon be unwinding, as cash goes home.

Happy real estate flipping Australia...

Thu, 06/20/2013 - 10:32 | 3675145 thestarl
thestarl's picture

Yep we're gunna cop it down here in Oz to brother.Go short on Fortesque,hey take your pick.You only have to look at some of the halfwits that have been running these companies.

Thu, 06/20/2013 - 07:35 | 3674580 Going Loco
Going Loco's picture

Gold capitulation. My prediction fulfilled (but I was way out with the timing).

Quote: My prediction for gold is [(1923-681)/2]+681 = 1302 within 2 weeks.

New prediction will be posted here on Saturday. I want to see where it closes Friday night.

FD: Bullionvault account all in cash (USD)

BTW if you think this is off-topic you are not paying attention. The world has run out of money.

Thu, 06/20/2013 - 07:43 | 3674596 Monedas
Monedas's picture

Gold Kaput-Elation:   A transitory sense of well being .... induced by a sell off in Gold .... and the belief .... that you will be able to buy in .... and some day actually take delivery ! 

Thu, 06/20/2013 - 07:35 | 3674581 Monedas
Monedas's picture

Monedas on Keynes:  "No Pane .... no Gain !"

Thu, 06/20/2013 - 07:38 | 3674588 new game
new game's picture

malinvestment screaming "wheres da money(flow) honey"

ha. bunch of fucking idiots...

hey ho cho minion-tink it time to float your yaun?

send over the PPT - calling shalom?

Thu, 06/20/2013 - 07:40 | 3674592 BurningBetty
BurningBetty's picture

Can I get a bailout if I gamble away my cash at the casino? I only need a few million.

Thu, 06/20/2013 - 08:00 | 3674633 YC2
YC2's picture

I wish the Chinese govt would supply my bank account w 50b in liquidity! I'm good for it, it's just an overnight liquidity thing... Transitory ...

Thu, 06/20/2013 - 07:41 | 3674600 new game
new game's picture

basket case of phoney growth

"but we got zee gold"

hey ho cho, got some tresuries for sale?

trade ya my gold for those fine investments...

Thu, 06/20/2013 - 07:50 | 3674605 eddiebe
eddiebe's picture

It's deja vu all over again.

Thu, 06/20/2013 - 07:46 | 3674607 kito
kito's picture

Gold getting obliterated folks.....

Thu, 06/20/2013 - 07:54 | 3674613 GetZeeGold
GetZeeGold's picture



Physical gold acquisition has's a lot easier than confiscation.


Please thank your grandkids for us.....quite literally candy from a baby.

Thu, 06/20/2013 - 08:00 | 3674636 AmCockerSpaniel
AmCockerSpaniel's picture

It (Gold) will go down in price in one marker, but up in the physical.

Thu, 06/20/2013 - 08:00 | 3674634 Dr. Engali
Dr. Engali's picture

Really? I just checked my stacks and they are still there.

Thu, 06/20/2013 - 08:05 | 3674645 lakecity55
lakecity55's picture

I just got to the computer after taking off my scuba gear.

I checked, down at the lake, just to be sure, but it's all there, and it is not shrinking.

PMs, that is.

Thu, 06/20/2013 - 07:54 | 3674611 Atlantis Consigliore
Atlantis Consigliore's picture

PLEASE, New Bernanke, Hitler Video, have Bernanke look CONCERNED.  ....




it figures it be something like this, put on the glasses.

Thu, 06/20/2013 - 08:05 | 3674650 eddiebe
eddiebe's picture

Yup, still got mine, and more is on the way. Looks like a fire-sale going on right this minute.

Too bad Germany can't get theirs, maybe the German public should look into that.

Thu, 06/20/2013 - 09:52 | 3675015 Nue
Nue's picture

New Chinese Special TARP Fried Rice.

Do NOT follow this link or you will be banned from the site!