Friday, September 26, 2008

Chinese told to Halt Lending

it's late.

i have a more complete analysis of what's happening, but i wanted to get this out there...another straw in wind. From Reuters:

BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.

A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)


If true, this is either:

1.) really big, or
2.) the chinese working to spread the panic so we can ram the bailout bill down the throats of americans, or
3.) they've secured an agreement to be able to invest in us financials in return for continuing to fund the us govt, and would like to pick up a few at lower prices

on reuters, the news was so big, it was 5th down the list of stories for the day after a fluff piece "Gay stars thriving but await a-list company" / sarcasm

glad to see that everyone realises the relative importance of this development.


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