Credit Tightens in China as Central Bank Takes a Hard Line

Discussion in 'China' started by t_co, Jun 21, 2013.

  1. t_co

    t_co Senior Member Senior Member

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    http://www.nytimes.com/2013/06/21/b...ng-contracts-to-lowest-level-in-9-months.html

    Basically, for those non-finance people out there, the Chinese government engineered a Lehman event in miniature to tell their banks to "harden up".

    Commentary here from one of my fav bloggers:

    This is why China can "win" on the global economic stage - when time comes, the central government can coordinate all its political and military levers to enact policies with unprecedented efficiency and brutality, policies that scare market participants - even those in New York and London - into doing what the Chinese government wants.
     
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