Saturday, June 07, 2008

The PBOC increases reserve requirement by 100 basis points! This will take 430 billion RMB out of lending pool in June! No matter how much hot money tries to flow in, I don't think it will match the nearly 70 billion USD decrease in money supply. There will be bankruptcies, especially in the real estate sector, which is already very strapped for cash.

NDRC announces fuel price hikes! Who is driving this?? And why now, as opposed to when the 7.7% CPI figure came out in early June??
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