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Thursday, August 23, 2012

We B Stimulatin'

Unfortunately I do not know the Mandarin phrase for this:
Bank of China Ltd., the nation’s third-largest lender by assets, posted the slowest quarterly profit growth in three years as loan demand weakened and lower interest rates squeezed margins.
The bank bolstered first-half earnings by setting aside fewer provisions for bad debt, as the first cut in benchmark interest rates since 2008 eroded profitability of lending operations.
Soured debts at the nation’s 3,800 banks increased for a third straight quarter to 456.4 billion yuan by June, the China Banking Regulatory Commission said last week.
There is an ancient and very moving Chinese banking spiritual that goes something like:
Roll those loans and capitalize the interest lalalla. 

Roll those loans and capitalize the interest lalalla.

Don we now our cheap apparel
Troll the Made in Chinese carol
China is going to be limited in how much they can stimulate in that Food pricing counts about a third of their Consumer Price Index. The US Soybean crop is not looking so good and with traffic on the Mississippi River being slowed/halted after reducing the barge weights pretty much ensures a big food price shock going their way.
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