Wednesday, November 21, 2007
If You Dig A Hole Deep Enough, You'll Get To China
Yields on three-month deposits in China and Korea have plummeted to near 1pc in a spectacular fall over recent days, caused by panic withdrawls from money market funds and credit derivatives.India's banks and major money holders are not resting easily either. The somewhat dire tone of the article is warranted.
"This is a severe warning sign," said Hans Redeker, currency chief at BNP Paribas. "Asia ignored the credit crunch in August but now we're seeing the poison beginning to paralyse the whole global economy," he said.
It is unclear what prompted this latest "heart attack" in the credit system, though rumours abound that Asian banks have yet to own up to their share of the expected $400bn to $500bn losses from the US mortgage debacle.
I'm begining to think your, "Its over" call was right on. Could it all come apart this fast?
Happy Thanksgiving to you too. I can guarantee you that tomorrow I will be ignoring financial matters!!!
ed not-currently-in texas
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