Loading ....PBOC’s Zhou Warns Of “Sudden, Complex, Hidden, Contagious, Hazardous” Risks In Global Markets–Zero Hedge
“High leverage is the ultimate origin of macro financial vulnerability,” wrote Zhou, 69, who is widely expected to retire soon after a record 15-year tenure.“In sectors of the real economy, this is reflected as excessive debt, and in the financial system, this is reflected as credit that has been expanding too quickly.”Zhou’s comments signal that policy makers remain committed to a campaign to reduce borrowing levels across the economy.Concern that regulators may intensify the deleveraging drive after the twice-a-decade Communist Party Congress hashelped push yields on 10-year government bonds to a three-year high.Which all sounds very ominous and very positive in ending this facade..but just like the promises/threats ofprevious deleveragings – at the first sign of market jitters, the bankers will fold. As Kyle Bass recently concluded…
It is hard for me to envision G&S as liquidating markets with China & all the developed nations in similar shape-and world financial mkts. blown to the max
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