2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 387.13

+0.1%

Dec 4 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robin Plunder who wrote (111966)	5/16/2015 8:31:26 AM
From: bart13	Read Replies (2) of 218185

If you don't want to know anything about the large risks and facts of the dark underbelly and risks of China's or other country's financial systems, then don't read ZH. Also don't read ZH and other similar sites if you can't deal with heavily PR'ed viewpoints, noise and high emotion, and just pay attention to facts. The MSM and elites did nothing but laugh at and satirize the few who were calling for a housing crash or financial crisis, and people who were reading ZH and other similar sites had the last laugh. Stay with the establishment's mouthpieces like FT or The Economist. "Note what China has done. They justified the implementation of LTROs by pointing to the need to jumpstart the refinancing program for local government debt accumulated off-balance sheet. The LTRO program will have the effect of creating more leverage, as purchased LGBs are pledged for PBoC cash that's then re-lent. The net increase in leverage could be justified by the hundreds of billions local governments will save on interest expense. Meanwhile, local governments would not be allowed to use LGFVs to take on more debt because after all, taking out off-balance sheet loans was what got them into trouble in the first place, so tapping those channels again while simultaneously participating in the debt swap program would render the entire refi effort useless. Now, Beijing has done a complete 180 and will not only allow, but encourage local governments to accumulate more of the very same type of debt they are now swapping, meaning that even as the newly-issued debt-swap bonds decrease local governments' debt servicing costs, new financing via LGFVs will invariably carry higher rates just as it did before, meaning the whole program is a wash."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next