Chinese banks appear to have lost trust in one another as the highest intraday 7-day repo rates have stayed well above 8% over the past month as questions swirl over the underlying collateral.
"When will a reporter finally ask: Now that central banks are becoming impotent, and the politicians are taking over, will you be America’s last independent Chairman?"
The "have your cake and eat it" mentality – the expectation of powerful central bank action lifting both stocks and bonds – raised the bar for disappointment.
Devaluation is not a tool for exports, it is a tool for cronyism, and destroys the purchasing power of salaries and savings to benefit low productivity sectors and the government. It is a transfer of wealth from citizens to the government...
...keeps repeating key structures and patterns as it’s fighting a battle for control and the outcome of this battle will ultimately determine everything...
It will be the “Perfect Storm” when debt, demographics, and unfunded pension obligations collide. There is simply not enough money to bail it all out at once...
"I don’t think this [Fed] rate cut is a big gain to consumers with credit card debt - [their] rate is already high and even if it goes down slightly...[they] very well might end up paying higher fees in other areas..."
