Daily commentary: the Fragile State of China’s FX Reserves redux
I highly recommend the FT article on China’s 1% in the links below. They bring up the capital flight problem that a Chinese hard landing might mean. I noted last April that Victor Shih gave a talk at INET on the Fragile State of China’s FX Reserves. His thesis was that capital flight would be an issue in the event of a hard landing. What’s more is that Marshall Auerback noted that "If you had huge capital flight as Shih suggests, the implication is that the yuan gets much weaker, as presumably these yuan are exchanged for other assets or currencies." We are seeing that. I also mentioned the commodities speculative trade unwinding. We are seeing that too.
As I said last year, just because we are thinking about this doesn’t mean we have it all figured out. There are still a lot of unknowns. But, this is a potentially much bigger issue than people realise. With Europe, Facebook and JPMorgan dominating headlines, we need to realise there are other issues out there.
Facebook market makers’ losses total at least $100 million | Reuters
Treasury Sale Sets 2nd Record Low Yield on Europe Debt – Bloomberg
Britain’s borrowing costs hit record low – Telegraph
SEC Staff Said to End Lehman Probe Without Seeking Action – Bloomberg
JPMorgan Joins MF Global in Lobbying Wins That Backfire – Bloomberg
Gemeinsame Staatsanleihen: Eurobonds sind nach EU-Recht verboten – Wirtschaftspolitik – FAZ
U.S. banking industry posts highest quarterly profit since 2007 – latimes.com
«El Gobierno de Cristina Fernández de Kirchner nunca va a pagar a Repsol» – ABC.es
El dólar negro llegó a $ 6,15, un 37% más que el oficial
Real continúa cayendo y cerró en 2,07 por dólar, mínimo en tres años – lanacion.com
Euro-Wirtschaft schrumpft weiter – Konjunktur – derStandard.at › Wirtschaft
Euro-Zone Economic Contraction Deepens – WSJ.com
BBVA estudia vender parte de sus negocios en Chile, Colombia y Perú y México – ABC.es
Ireland will require second bailout says Buiter – The Sunday Business Post
Eurozone economy contracts sharply – FT.com
Hey, Germany: You Got a Bailout, Too – Bloomberg
Muhammad Ali vs. Oscar Bonavena, 1970 | Retronaut
U.K. Economy Shrinks More Than Estimated on Building Slump – Bloomberg
Facebook IPO Post Mortem – Killer – but not for the reasons you think ! « blog maverick
Jury deals blow to Oracle in case vs. Google | Reuters
Moody’s Raises Ford to Investment Grade | Crossing Wall Street
EXCLUSIVE: Here’s The Inside Story Of What Happened On The Facebook IPO – Business Insider
Spain struggles to meet regions’ 36 billion euros debts | Reuters
Celebrities portraits found in cupboard, 1970s | Retronaut
Spain to inject at least $11.3 billion euros in Bankia: De Guindos | Reuters
FT Alphaville » China’s ‘1 per cent’ risk
Greece debt creating healthcare crisis, warn chemists | World news | guardian.co.uk
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