Tag Archives: China

Opening Quotes: Disconnected Stimulus

US & Europe believers are eagerly awaiting another fix …..

But the disconnects – in performance & cure all optimism in the power of the modern central bank- with China are opening very wide.

FT: ‘Hopes of stimulus steps supports stocks’

” …… investors are being presented, perhaps, with evidence from China of the limits to monetary policy’s sentiment-reviving qualities.

Speculation abounds that Beijing is preparing to again cut the reserve requirement ratios for the country’s banks in an effort to encourage lending as economic growth slows.

Any such move would follow last month’s first cut in borrowing rates since 2008, an easing of policy that many would have expected to encourage a stock market revival.

Yet on Thursday, the Shanghai Composite is down 1 per cent and sitting only about 0.5 per cent above its lowest closing level since the start of January.

Steelmakers and coal miners led declines in Shanghai amid weakening demand and falling prices. Indicative of the concerns about slowing growth in the world’s second-largest economy, shares in Sany Heavy Industry extended losses for a fourth day, as the company, China’s biggest machinery maker by sales, cut jobs.”

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Opening Quotes – Social Finance IS The Antidote

“There will be no exit by Greece,” Binay Chandgothia, a Hong Kong-based portfolio manager at Principal Global Investors, which manages $250 billion globally, said on Bloomberg Television. “If they take structurally positive steps, things will be all right in the long run. China is a little bit of a concern but China has policy levers. They can use policy incentive to get growth back on track.”

http://www.bloomberg.com/news/2012-05-27/japan-stock-futures-little-changed-as-greek-concern-eases.html

 

I have no idea who this guy (?) is. And to be fair Bloomberg are very good at finding their ‘quote of the moment merchants.’

But it has to be said – by me – this type of drivel represents everything that is wrong with the mainstream financial media.

Every word word oozes with the <over> confidence of a man managing someone else’s money  – & risk.

Every word betrays the mindset of somewhat educated in the <failed> theories of modern finance.

Social finance – as exemplified by the recent $FB debacle – IS the antidote to this outdated/self-serving non-sense.

Period.

 

 

 

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