“Restocking.” Figuratively and literally.
“Felix, you had me at hello”…
“…the Minsky threat of a financial crisis per se is lower than the risk of generalized downward pressures on economic growth should the policy effort falter.”
“Let me in.”
Come one, come all.
“When asked their worst trades this year, they mostly cited buying volatility, credit protection, or equity puts.”
And now, back to your regularly scheduled programming…
“One school of thought is that they have played their cards exceptionally well this year in the FX market.”
There’s always tomorrow.
The point: Beijing is already predisposed to intervening in markets to offset any turmoil a sovereign downgrade might catalyze and you can bet that predisposition is stronger than ever ahead of the Party Congress.
This time last week, everyone thought we’d all seen our last Friday.
That’s cause for concern. Given that the country is the engine of global growth and trade, you don’t want to see the brakes slammed on. That said…
Now stay tuned to find out if Kim bought some VXX today on the cheap so he can fire off an ICBM this evening and make a few million to put towards his next H-bomb.
I’m not sure it will ultimately be enough to get the job done, all things considered, but the PBoC’s decision to effectively remove a barrier to speculation against the yuan (that’s a crude way to describe it, but it gets the point across) by cutting a reserve requirement put in place in the days following the devaluation in 2015 seems to have succeeded in putting the brakes on the rally – if only for a day.