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Something Just Snapped In China
While Sweden is over-flowing with excess cash on bank balance sheets, it appears that banks in Hong Kong are desperate to borrow Yuan (or scared to lend) as overnight HIBOR just exploded higher to 9.45% - a record for the interbank offered rate. The HKD and CNY/CNH FX markets remain relatively stable (with Yuan fixed marginally higher again for the 3rd day).
From sub-2% a week ago (before The Fed hiked rates) to 9.45%, the overnight rates has exploded...
It appears as though it could be year-end window-dressing-related as 1-week rates also soared - but we do note the extent of the spikes are unprecedented even for year-end liquidty needs.
The last time 1-week rates spiked like this, US equity markets crashed...
Did a Chinese/Hong Kong bank just blow-up and suck all the liquidity out of the room? Or is this delayed blowback from The fed's RRP?
We suspect it is unrelated but we do note that Caixin earlier reported the banking regulator has suspended the private-equity arms of 17 commercial lenders.
Charts: Bloomberg
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Bah! It'll be fine. You'll see.
<NoDebt exits quietly via the fire escape>
The end will not come with a bang, but with a whimper.
OH SNAP!
I can see that it will be a Merry Christmas over in China too...
* * *
Whatever happens there, the Bearing family wishes all of Zero Hedge a wonderful Christmas and New Year.
Is that the Peru bearing guy? Did you change your ID?
shh..
I thought that too. Merry Christmas DoChen and the rest of the bearings.
The two words most dreaded "margin call"
ho ho ho, 38---22.
Missed you, DoChen...typically I speak for Janus only; but in this case I can with confidence and unanimous solidarity state that the Hedge just wasn't the same without the sound of those rolling bearings.
Merry Christmas & Happy New Year from the Janus family and all we ZHealots.
Woops I bought something from China and the tang snapped off! I tried fixing it but no glue I tried worked and really the design did not have enough structure for glueing to be successful. Now I'll just have to get some new tang.
Hit the plastic with self-etching spray paint. Anything will stick after that preparation.
You should know better than that. When it comes to China, you always buy two. That way, you might get one that works (for a while).
Good to see you alive and raisin' hell! Have a great (insert your seasonal moniker of choice here)!!
Gracias! Back at ya!
Great avatar, DCRB, Merry Xmas
That Has no bearing on this.
I hope to get a lump of coal for Christmas. It's freezing in here.
Dear Leader Obamao has forebidden coal. He is concerned you will become the Sasquatch of carbon footprints
Doh!
Merry Christmas, and may you never need greasing.
Merry Christmas 388 , glad your back, the place was losing its charm. We lost headbanger too , he always made me chuckle
@Cog The Hollow Men is good stuff but I think the Poem you're looking for is Yeats "The Second Coming".
Nice! But I was actually referring to the collective whimper from "We the People" when we discover the system is collapsing and we beg for tyranny and enslavement if only they would turn those damn machines back on.
In that case, good choice.
"Things fall apart, the center will not hold."
That depends solely upon what you happen to be doing at the time. Frankly, if she gets me with the down stroke, well that's just OK with me.
I swear, if these goddamn chinks ruin our Christmas...
You'll shove a cannoli up your ass, walk backwards, and fuck your wife with it?
Ruin it ?!!
Everything in, on, around and under the tree ( including the tree ) is made in China.
I think Santa Clause is a chink. There would be no modern Christmas without the Chinese.
We would have to resort to going to church, spending time with family and friends, and making gifts by hand. Oh, the horror.
Likely there are more Christians in China than is the US. It's a hard to get an accurate estimate but most estimate it to be higher than the US. I wonder if Santa will move there too, it seems his workshop is already there.
My point exactly, how you could ruin something that's already so far from what it was originally intended? This is a celebration of the birth of Christ, now it's just a celebration of all the junk you can buy (by borrowing) at Walmart...good lord and butter...
Every year I'm a little more disgusted by what Christmas has become.
Number One...Christ was born in the Spring, most likely during Passover.
It gets mighty cold in Bethlehem in the dead of Winter. The Shephards are NOT IN THE FIELDS, GRAZING SHEEP. IN THE MIDDLE OF THE NIGHT IN DECEMBER.
Of course asking you to actually READ the account in Luke Chapter 1 would not bear fruit.
Number Two...Christmas is based off of a LIE FROM HELL...and YOU CELEBRATE LIES???
SATAN is the father of ALL LIES. There is no such thing as a WHITE LIE. Lying sends you straight to HELLFIRE, DEMON WORSHIPPER.
Finally I DO NOT NEED AN EXCUSE TO CELEBRATE THE BIRTH, LIFE, DEATH and RESURRECTION of Christ Jesus. I do that EVERYDAY.
Every year I become more disappointed by what so called Christians have become. The bulk of them are "Sunday Christians", believing erroneously that all of their sins are covered.
But the Good Lord knows that they have not read, not even bothered to open that Coffee Table book, and studied Romans 6, Hebrews 6, and Hebrews 10 because if they had then they'd know that Grace covers a multitutde of sins but not willing sinfulness.
Then in Matthew 7, right after that famous scripture that everyone likes to claim when they are being CONVICTED FOR THEIR SINFUL NATURE, because it is so uncomfortable after all...
It says that not everyone who screams out, "Lord, Lord" will be saved. Shockingly enough many of these so called Christians who do great works, miracles, casting out demons, will be called, and rigtly so, "Workers of Iniquity". and cast out as Jesus did not know them.
I am fatigued at reading the LIES FROM THE SATANIC ROMAN CATHOLIC CURCH proclaiming that Christ was born on Christmas Day when nothing can be farther from the Truth.
With that,..
Bah!!! Humbug!!! Depart from me you liar, you worker of Iniquity. Repent as you face Hellfire for doing the will of your master, the Father of all lies. Get you behind me SATAN.
I shake the dust from my feet.
Personaly, I computed that he was born around October -ish He was cruxified at about 33 1/2 years of age. = Either way, it was not in December.
Fuck you Pharisee. Your rhetoric tells me you have no personal relationship with God. You believe you are proselytizing while driving souls away with your judgmental message of retribution and suffering.
God is love you piss ant, knows everyone and welcomes the willing. You and your message of division and doom suck.
This is just another hijacked pagan holiday. The eggnog is good though.
Well it is not just another pagan holiday. it is THE pagan holiday and folks seem to like it ....even the non christians which includes me the atheist.
Sure! It allows one to place a dollar amount on the quantity of love you have for someone.
Goooood one NoDebt! I laughed so hard, my glasses fell off.
HIBOR, LOWOR, let's limbo!
More liquidity = more tea, or whiskey.
Cheers! Everything is awesome! C'mon Janet, 5%! We believe!
"it’s like a 5-lane highway going in and goat trail coming out" -- Kyle Bass
the world would be better off if we stuck to what we are good at, the chinese well thats dim sum, any other efforts are wasted energy.
Worshipping transvestives for us?
when you have a hen House if you kill too many Chickens the remainder stop laying..
China has been disappearing a lot of High profile Businessmen somebody somewhere is going to bolt.
Gold is still down so all is right in the casino.
The article suggests that equities might be on the verge of crashing (OK, we KNOW that at some point they have to). I'd been wondering whether a big sell-off (who is going to buy?) would result in a lot of folks dumping gold in order to meet calls: eventually gold would have to turn back upwards, but just thinking that there's going to be a good drop beforehand. Would this be reasonable to expect?
"just thinking that there's going to be a good drop beforehand. Would this be reasonable to expect?"
Indeed it would. September 2008 saw a nice drop (~10%) as banks dumped their most liquid assets (hello, gold) in order to meet the margin calls you speak of. Shortly thereafter prices launched up about 20% and set a new nominal price record. All in the span of less than two weeks.
Thanks for the confirmatrion, seek!
Do banks still have gold? More likely fully loaded with gold shorts.
2008 and 2016 represent two completely different times / situations.
Let the games begin!
Sum Ting Wong
See Sum Ting Say Sum Wong
Get Ting Old
See Sum Ting Say Ting Old
The $1T in Fed reverse repo's is going to make a lot of dollar pegs fall.
https://youtu.be/IhZtyRjiAKk
Gekko
When you have the Federal Reserve's still doing QE and buying stocks covertly, you will have huge distortions in the market.
The Fed's balance sheet went up by $20 billion last month and no one seemed to notice. Who do you think got the money???
The Fed is trying so hard to keep the stock market propped up despite the bad economic data in order to protect the .1%, Obama, and Hillary in 2016.
Audit the Fed NOW !!!
For fucks sake. this ain't about some stupid collection of political hacks. Either people haven't been around the block, are Party Pussies or they had a block dropped on their head. Yours is the same shit that's said every fucking election season.
TPTB will elect whom they deem will keep the masses at bay: and if people think that the Donald ain't one to fall in line they're in one of the aforementioned slots (ignorant; Party Pussies or dumb). Recall that George W. Bush was sold to everyone as a non-interventionist (not in to nation-building) cowboy, despite being a Yale cheerleader (Ivy leaguer); and, of course, Obama was sold as a peace candidate who cared about folks, despite, well... no need to point out what we know.
Auditing the Fed is meaningless. We're fucking broke. The entire world is broke. Growth, which is the underlying mandate, is dead: without growth everything locks up.
Abolish the Fed. Abolish ALL governments. And shoot all fucking Party Pussies! And after that we'll still be broke; but, we'll have clearer minds in which to figure out what the fuck we're going to do with ourselves.
Well said Seer - I like the cut of your jib!
and if people think that the Donald ain't one to fall in line they're in one of the aforementioned slots (ignorant; Party Pussies or dumb).
and if people think that the Donald ain't one to fall in line they're in one of the LATTER slots (ignorant; Party Pussies or dumb).
FIFY.
Other than that minor mistake YOUR POST IS SPOT ON. I have understood that for quite awhile.
The current system is NOT SALVAGABLE.
Audits will not fix it.
Placing your Faith and Confidence into that which is corrupted will only serve to yield that which is corrupted.
Abolish it.
"The Fed's balance sheet"
Not counting all the garbage they have off balance sheet.
About as Federal as Federal Express.
Federal Express has a better looking balance sheet.
A few years back I suggested that the Fed was going to swallow a whole lot of shit, effectively being the black hole of debt. I'm not saying that they're the Good Guys. They're just running the game as it can only go: we got here due to a system based on perpetual growth- if we failed to do physical growth then by god it would have to be done virtually! (both would/will fail) Most of today's assets aren't going to be of a lot of use to future humans. Rather than condemn the Fed we should listen to our own voices of reason and accept what the Fed is doing: they'd sucking up a bunch of shit, holding a lot of PAPER. Really, give them their paper (Federal Reserve Note) back and pick assets wisely.
If anyone is confused just understand the true fundamentals: Food, Shelter and Water. If you base your decisions on them then at least you've got some element of being grounded. Or, buy up a bunch of shares of Apple and or Facebook...
Good advice but you omitted beer, crackers, toilet paper, and Pampers. That's Mazlow on steroids. I didn't add SEX because that is equivalent to having a heartbeat, unnecessary to list. Mazlow may have been homo.
Most of us here at ZH have better balance sheets!
Go ahead, do the math. Global GDP, whaddaya say ? 80T ? Let's add Sovereign Debt LOL, corporate, and the proles, ok, got that number ? Yeah that's a Bigby. So let's add to that the unfunded social obligations, yep, that big ass number. Crikey,
A good lunch is way undervalued.
I guess that means limited assets and no debt?
Stomp it to death NOW!
Check mate
LMFAO!!!!
BULLISH BULLISH BULLISH!!!
YOUR MOVE YELLEN!!!
They told us today it might be 4 weeks before workers return to the factory after Chinese New Year. They must be really disgruntled when brand new dormitories does nothing to bring them back any sooner!
No more crude storage and no more vacant shelf space at Wally World. Time for all to just get drunk and screw.
Uh, what is this strange concept called the velocity of money? It has slowed to the velocity of plate tectonics.
Farqued, tectonic plates have a rather nasty habit of making very sudden and violent moves when and where you least expect them...................................
I've been saying for years that the Fed is itself bankrupt.
Funny concept when you consider that they can conjure money out of thin air.
When people begin getting it though their heads that the Fed isn't the ideal "backstop," all bets are off.
Think about it. They make money out of nothing, then collect interest on it. Nothing but a bunch of counterfeiters.
And to function they have to use DEBT ( Treasuries ) as collateral for more debt. What a racket.
Coming back to the notion of the dichotomy of a Centrally controlled political construct that interfaces with the HUGE Nebulous of the money markets around it ; aka HK, Singapore & Taiwan financial markets all tied into the world wide financial web.
How can the centrally planned Yuan run by Bank of China try and control "interest rates", "exchange rates" and Capital Flows ALL AT THE SAME TIME?
Something has to give because the trade-offs are impossible.
According to economic theory you can control TWO variables but the third is beyond your reach!
Its called cause and effect. And it applies to all monetary constructs.
In 2016, as the currency war risks to hotten up, we will see more and more incoherence between CB attempts to stabilise interest rates, exchange rates & capital flows all over the interconnected money web!
stop the nonsense, nothing snapped and the markets are only going up from here. THE FED WILL NOT ALLOW THE MARKET TO CRASH!
stop the nonsense, nothing snapped and the markets are only going up from here. THE FED WILL NOT ALLOW THE MARKET TO CRASH!
Deliberate and transparent manipulations and FORCE only indicate their loss of control, and the control they seek is our consciousness, our clear observance of the reality. This loss of control is ultimately the real threat to our non-reality. It will suck for all of us, especially those last to see.
I see your sentiment often. What difference does it make (Couldn't resist) if you are the first or the last? The same fate will be suffered by all but the most elite. WHEN you wake up to the inevitability of your demise has no bearing on the degree to which you will die.
Nothing can go wrong...
If I had a quarter every time ZH anouces a "snap" in china I'd be rich !
if I had a quarter every time the FED created one, I would be far richer than all in existence.
Revolution un Tunisia started with higher food price, a stupid cop and and a match. All those soon in the "developed world"
in china the state owned banks put screws to smaller banks.
in usa the bank owned state puts the screws to smaller banks.
the difference is subtle, but it's there.
Hory shet...................................................
Anyone else surprised by the the market's rise in the past few days?