60 years ago today on the 27th October 1962, human life on Earth came the closest it has ever come to a terrible ending. Everyone alive today owes their life to this handsome devil, and most of us don't even know his name. Let's change that - a thread 🧵
This is huge. Don't know how this will end. Henan bank is NOT the only one that is having problems with liquidity. All four Chinese banks are having the same issue. Some depositors found they can save and can NOT withdraw money with their bank cards.
#bankrun#China#CCP
Normally I would not be posting personal developments on this website, but in this case I have a pressing concern. My dad, Spanish economist Andreu Mas-Colell, is dealing with an incredibly difficult and unjust situation. 1/
Industry's problems go FAR beyond lack of comparative expertise. Most institutions "offering" #China analysis are wholly compromised by their need to appease Beijing for larger profit goals, be it mkt access or merely ⬆️slices of priv wealth, asset mgmt or underwriting pies
1/6
How much have EU countries paid or received from the EU?
Eighteen years of data show the money has been flowing from West to East, not North to South
(Source: https://t.co/mgzapzWGDl)
Economics is indeed struggling with inflation theory. Monetary aggregates and monetarism have been correctly abandoned. Domestic slack explanations (the Phillips curve) have been under attack but are still a bit alive...1/n
2/
Still credit has never been so tight since 2014 (graph), and unemployment will not magically disappear.
As a result the demand that has been bottled up until now will be satisfied. In a second moment downward pressure will hit real-estate prices
1/
Two graphs that tell a very important story: pent-up real estate demand rebounded strongly after the lockdown.
Considering the logistic of the lockdown, this situation is easily understandable
Mariana Mazzucato boccia il Mes come "problematico" e "recessivo" (anche se non sembra molto aggiornata su ciò che è oggi il Mes). Essendo lei la consulente economica di Palazzo Chigi, dobbiamo dunque concludere che il premier Conte condivide questo giudizio sul Mes? Il PD lo sa?
Interesting move but with expected lower demand there is a good chance that Chinese SMEs use this credit in an unproductive way (studies show that incentives to behave in this fashion increase during a crisis).
We'll see if that's indeed the case observing the NPLs in 2021
China's central bank rolls out a new small business lending program. Interestingly, unlike the PPP, Chinese banks will assume the risks of loans sold under the program and need to repay all of the 400 billion yuan ($56 billion) after a year.
https://t.co/EAwuAdvtJ8
China manufacturing PMI slightly above 50. But new export orders was very low, at 35.3.
Very sharp decrease from a month ago. Once again, global demand is still weak.
#PMI#China