Tom,
THis weekend I did a lot of thinking about the positions of the HKMA and the hedge funds, coming to the conclusion that the HKMA had a good chance of succeeding.
Then we have the S&P lowering their rating.
Now, this evening, I realize it was wasted time. The fall in the US market will likely cause a large drop in Asian markets, including the Hang Seng, and the HKMA's efforts may be wasted as the hedge funds cash in profits.
I can't see the HKMA trying to support in this situation. If they try, the selling will accelerate and they can't buy the entire market.
The Japanese banks are close to going under, this may do it. The ASEAN countries .... South Korea ....
China isn't immune, but at least it isn't as exposed.
What a disastrous day this may turn out to be,
Ron
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