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Next year will be a very important year for China because possible strains in the banking system and the intensity with which the reformers present their case will give us a better sense both of how much debt capacity the country retains and of how well positioned Xi Jinping and his allies are to implement the needed reforms.
An exceptional bid by China’s central bank to curb soaring interest rates and relieve pressure on the financial system appeared to have come up short on Monday, as Chinese money market rates shrugged off the measure and continued to approach the crisis levels seen in June.
In addition to holding its benchmark rate at 0.25%, the ECB also left the rate it pays on bank deposits unchanged at zero. The eurozone is doing so by accident, letting market forces drain liquidity from the financial system for month after month. ECB president Mario Draghi said: "We have to dispense with this idea of deflation.
Historical evidence shows that this rarely happens following a balancesheet recession. Such episodes often coincide with banking crises, which in turn tend to go hand in hand with much deeper recessions – balancesheet recessions – than those that characterise the average business cycle.
By 2025, smart workflows and seamless interactions among humans and machines will be as standard as the corporate balancesheet, and most employees will use data to optimize nearly every aspect of their work, predicts McKinsey & Company.
Had I suggested in 2007 that the Fed balancesheet expansion of $75 billion a month would have been considered "tightening" people would have thought I was nuts. Obamacare made the US healthcare system worse for most, not batter. At long last, the Fed has finally started to taper. Here we are. The broad U.S.
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