And so the holiday-shortened week comes to a close and it delivered everything that could have been reasonably expected of it.
Ok, well the yuan plunged overnight.
Well, that didn’t disappoint.
“Stirred, in a half-carafe.”
Predictably, it went awry almost immediately.
All eyes on (geo)politics. And Canada. Of course.
So who’s really in the driver’s seat here? As usual, there’s a strong argument to be made that it’s the Chinese.
Remember back in late May and early June when the PBoC engineered a pretty epic short squeeze in the yuan?
“He’s just gonna decide – out of the blue! – to rip us off?”
“Restocking.” Figuratively and literally.
Who’s still drunk?
“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.”