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Tag Archives: Japan

Shadows falling in China? Credit tightens, desperate municipalities seek funding from “alternative” sources

This could be a good thing overall for China as the “alternative sources,” trusts, what is often called the “shadow banking system,” might actually be a stabilizing and limiting force in the economy. The rates of interest on loans through the shadow banking system are much higher than what municipalities can obtain through traditional lenders, and probably more accurately reflect the real risk of loans. (Which are considerable it appears.)

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China’s economic data “Willfully fraudulent”

Well I can’t believe it. You mean the economic data from the world’s Ultimate Crony Capitalist State is intentionally incorrect? You mean China’s entire economy might be overstated by 10-12%? (Doesn’t that put Japan back into the number 2 slot?) You mean those ghost city stories are for real? That the red dragon, though not toothless is lacking much of the fire we thought it had? I am shocked.

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Central Bank Nastiness, Japan Swoons, Nikkei Down 6.4% Last Night

There is a chill moving through markets right now. The great central bank experiment of the last 5 years (the acute version) is misfiring again. As they say—you can’t get something for nothing, and the experiment which has failed the lower and middle classes of the Western world is now failing the monied classes. At least at this moment and in Japan. The markets which were feeling pretty good about themselves (for the most part, though Japan has had significant volatility recently) aren’t feeling so good.

The world is coming to terms with the possible end of QE, and like a heroin addict whose methadone prescription may soon run out, markets are getting very nervous.

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