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Central Bank on the MBS Ropes

 
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Author Central Bank on the MBS Ropes
rffrydr
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PostPosted: Fri Sep 05, 2008 7:59 am    Post subject: Central Bank on the MBS Ropes Reply with quote
Gut check time for Stephan Roach et. al. :

http://www.marketwatch.com/news/story/chinese-central-bank-may-need/story.aspx?guid=%7B032D3542%2D554A%2D4A9D%2DA2B4%2D4161C6985DC1%7D&dist=msr_5

Behind the Yuan cover story there is some serious depreciation issues. Greenspan said last summer that we had no fear of Chinese selling but they're sure trying to get out of buying.

http://ftalphaville.ft.com/blog/2008/07/21/14625/chinas-fannie-and-freddie-problem/
[note the commet]
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Post new topic   Reply to topic    MarketThoughts.com Forum Index -> The China Board
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rffrydr
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PostPosted: Wed Jun 30, 2010 10:37 pm    Post subject: Reply with quote
A stable yuan and 45% price gain right after this was reported should have given PBOC plenty opportunity to apply small hedges with big protections--and even not, current rates offer one more opportunity. Any way you cut it PBOC is perhaps the second biggest winner in this selldown.

Quote:
Who would have thought the Chinese may have to join the global QE program? Who says they aren't team players?


--Which begs the bigger question:

Quote:
Make no mistake, this is a leveraged economy: not because everyone is borrowing at 95% LTV, Interest Only, but because so much of the economy that actually gets loans has wafer-thin margins, produces more than the country can use and can barely make a buck. Remember, these are "central" SOEs that are listed and represent the more solvent government owned enterprises.


http://macro-man.blogspot.com/2010/06/chinas-western-disease-need-same.html
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dknoester
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PostPosted: Fri Sep 05, 2008 10:28 am    Post subject: China’s central bank is in a bind. Reply with quote
Further commentary by The New York Times on the above:

http://www.nytimes.com/2008/09/05/business/worldbusiness/05yuan.html?_r=2&ref=business&oref=slogin&oref=slogin

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