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Posts by "qingyu"
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Posts by Anonymous "qingyu":
never trade sugar, my friend who work in icbc told me.
what is the goal for ecb? weak eur?
77 by end of this year?
china army re-enter north korea and j-20 fighter test flight would be good signal.
some inside men said, j-20 not as good as people thought, but have a lot of achievements.
By Lex
Will the latest increase in Chinas reserve requirement ratio put a brake on property prices? Dont count on it. In a perverse way, every increase in the RRR is an incentive to load up on real estate.
To understand why, take a few steps back. In the past, the Peoples Bank soaked up liquidity caused by currency intervention by issuing sterilisation bills. From 2008 onwards, though, as the yield the bank paid on these liabilities started to rise above what it was earning on its assets mostly US Treasuries this became an expensive business. So the PBoC started locking up more bank deposits through the RRR: Fridays increase, to 19 per cent, was the seventh since January last year. On its own terms, this has been a successful strategy. As Commerzbank notes, liquidity created through foreign exchange intervention since 2004 has tracked closely the liquidity absorbed via bill issuance and RRR rises.
But consider the implications for potential homebuyers. If bank credit growth is managed primarily through quotas, rather than the price of money, then every increase in the RRR amounts to an assurance that interest rates will not rise materially. In other words, yes, you can afford that second or third mortgage.
Does this matter? Since August 2005, when the official sale price data series for 70 cities began, the average yearly rise has been 7 per cent, well below the annual increase of about 12 per cent in urban disposable incomes. But the average is misleading. It masks the growing inequalities that show up in the consistent failure to hit targets for public housing development, the rise in tactical divorces to bypass one-home-per-family restrictions, and plummeting government approval ratings.
Premier Wen Jiabao has implied that house prices, up for 19 straight months, are unreasonable. In reality, continued rises are eminently reasonable: abstract notions of tightened liquidity are just not as effective as real hits to personal finances.
i dont blame britain by two reasons. first, i have strong heart, thanks my parents. second, when china was a great empire, we didnt do anything better...very sadness...@-@!!!
^-^ funny story...