could chinese banking be on brink of collapse?

Propagandhi711 wrote:credit swaps hit record high, much like in '08 for US. but this also gave false signals in jan when they hit a record..this might be the straw that breaks the market, am going to sell much of everything EOD:

http://www.bloomberg.com/news/2014-02-26/crisis-gauge-rises-to-record-high-as-swaps-avoided.html

harharmahadev wrote:

Propagandhi711 wrote:credit swaps hit record high, much like in '08 for US. but this also gave false signals in jan when they hit a record..this might be the straw that breaks the market, am going to sell much of everything EOD:

http://www.bloomberg.com/news/2014-02-26/crisis-gauge-rises-to-record-high-as-swaps-avoided.html

I would agree with you that the odds of shit hitting the fan are higher than seeing gains.

I'm following you, pal.  Will be selling all my stocks by eod.

harharmahadev wrote:

Propagandhi711 wrote:credit swaps hit record high, much like in '08 for US. but this also gave false signals in jan when they hit a record..this might be the straw that breaks the market, am going to sell much of everything EOD:

http://www.bloomberg.com/news/2014-02-26/crisis-gauge-rises-to-record-high-as-swaps-avoided.html

I would agree with you that the odds of shit hitting the fan are higher than seeing gains.

I'm following you, pal.  Will be selling all my stocks by eod.

rawemotions wrote:Well, something is cooking with VXX is on an uptrend (despite contango), and  despite the fact that stocks themselves rising.  

NPA's in Chinese banks can be funded by the gargantuan Chinese Foreign Exchange reserves. However China would have to curtail fresh loans to unproductive sectors, to prevent NPA's getting even worse. So at the least Chinese growth numbers are coming down.  

They are looking at India to solve the idle excess capacity of their factories. They have offered to fund 30% of India's infrastructure requirement around 150 Billion$.  

The catch would be that they would fund it possibly interest free, but men , material and capital equipment would only come from China.  In effect they are essentially giving seed capital so that they can get customers for their factories which have excess capacity. Clearly this would be projected as a great help, but instead what is happening is that they are solving their own problems with India's help, while stabbing India at the back by laying a road across Pakistan Occupied Kashmir thus legitimizing Pakistan's occupation of a portion of the state of J&K.

Co-incidentally China is also pushing for a change in the band for reminibi, and have for all practical purposes, given up on the one-child policy. Basically they are bringing in another factor for demography drive growth.

So we need to watch China does.