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Bulls and Bears Debate China: Property Bubble Expands Again; GDP Growth Picks Up; Economic Recovery Underway? No Says Michael Pettis

MishTalk

A series of land sales have set record prices since August, with real estate developers ramping up their competition for the best plots in the biggest cities. Part of it may simply be that few Chinese see any real alternative to real estate as a way of saving. China Rich in Reserves. Pettis Replies.

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Banks – Industry Overview

Tom Spencer

Business banks: Banks that focus on mid-sized businesses and commercial real estate. Translated into plain English, asset sensitive means margins expand when the Federal Funds rate increases, as the interest income from assets on the balance sheet increase faster than liabilities. Funding and the Loan Mix.

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China Cash Crunch Eases, For How Long? Three Things China Needs to Avoid; When can Beijing Truly move to Market-Determined Interest Rates?

MishTalk

It is clear that banking institutions, state-owned enterprises and local government financing vehicles have remained relatively insensitive to, or been able to circumvent, higher interest rates and bond yields, central government curbs on the shadow banking sector, and the rampant real estate and infrastructure markets.

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Pettis on Strains in China's Banking System; Avoiding the Fall

MishTalk

They also tend to be associated with rising stock and real estate markets, which, by making households feel wealthier, encourages higher consumption. This isn’t the first time, of course, that the balance-sheet dynamics during a growth miracle have created unrealistic evaluations about the quality of policymaking.

Banking 71
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Pettis Proposes Savings Glut and Income Inequality are Source of Global Imbalances; Mish vs. Pettis: I Respectfully Disagree

MishTalk

This model rests on an understanding of how distortions in the savings rates of different countries have driven the great trade and balance-sheet distortions with which we are wrestling today, just as they have in most previous global crises, including those of the 1870s, the 1930s, and the 1970s.

Banking 66
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Mish's Global Economic Trend Analysis: FHA Swamped By Defaults.

MishTalk

Patrick Housing Crash News Top Housing and Commercial Real Estate News. Balanced Budget Ammendment Sign the Balanced Budget Petition. Bay Area Real Estate Trends. Mish and Eric King discuss Gold, the Stock Market, the US Dollar, Sideline Cash, China, and US real estate. Pension Tsunami.