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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (109456)	1/5/2011 4:35:03 PM
From: Crimson Ghost	3 Recommendations Read Replies (2) \| Respond to of 110194

Bonds were trashed today. But stocks keep inching up. This is starting to remind me of 1987 where stocks prices kept climbing in the face of surging interest rates. We all know how that worked out.

To: russwinter who wrote (109456)	1/6/2011 1:51:45 AM
From: GST	2 Recommendations Read Replies (1) \| Respond to of 110194

Ok -- I am still trying to catch up with your level of concern. Here is the traditional sense of inflation in China: There is a need to let the RMB float up to dampen inflation (Chinese man-in-the-street view) and the supposed motivation behind tightening is also to get a grip on soaring inflation -- see the link. npr.org Your view, as I read it, is that the RMB is not under huge upward pressure, and the sleeper (in plain sight) is a banking crisis from lending on a scale and poor credit quality that will sink the Chinese financial system and act as a brick wall for the Chinese economy -- sending the RMB down -- yes?? This is a real risk that seems to have been almost completely ignored and is not priced into markets -- you view, yes??

To: russwinter who wrote (109456)	1/6/2011 2:01:08 AM
From: GST	2 Recommendations Respond to of 110194

I see that China is no longer setting a lending target -- this might lend support to the 'liquidity' explanation for tighter markets: reuters.com Also hiking reserve requirements sharply: online.wsj.com Addtional speculation that RMB will be allowed to float up to slow inflation. smh.com.au