MaxedOutMama
Wednesday, November 21, 2007
If You Dig A Hole Deep Enough, You'll Get To China
Hat tip Anthony, who posted this one over at CR in the comments. I realize that most people have other things to do than follow what India and China banks are doing, but what happens there does matter:
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.
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"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.
Comments:
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Mama,
I'm begining to think your, "Its over" call was right on. Could it all come apart this fast?
Happy Thanksgiving.
Paul
I'm begining to think your, "Its over" call was right on. Could it all come apart this fast?
Happy Thanksgiving.
Paul
# posted by 
: 1:57 PM
: 1:57 PM
When credit qualifications are based on no more than "I think you can repay, I think you can repay", sure it can.
Happy Thanksgiving to you too. I can guarantee you that tomorrow I will be ignoring financial matters!!!
Happy Thanksgiving to you too. I can guarantee you that tomorrow I will be ignoring financial matters!!!
The problem with digging a hole to China is that they were busily digging their way here. (Look out, Chunnel) I really think MLEC was an attempt to get past this round of bonuses (such as they will be), and a lot of financial mucky-mucks will decide mid January to spend more time with the family, etc. The key question now is whether we've all chosen a good spot to watch the train wreck.
ed not-currently-in texas
ed not-currently-in texas
# posted by : 5:57 PM
: 5:57 PM
That's the way it started with the S&L crisis too. They dribbled out numbers like $10 billion, $50 billion, until it (the bailout) got ridiculous. It is much, much, worse this time. They will never admit to losses in the trillion$, but that's what it would be if they actually did an honest day's accounting. Same crooks, different day.
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# posted by : 7:09 PM
: 7:09 PM << Home
