Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

[GRG55]

Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

Sept. 10 (Bloomberg) -- Bankers on Wall Street are suffering from “over confidence” and are “myopic” in the face of a continuing financial crisis, Bank of China Ltd. Vice President Zhu Min said.

“You go to Wall Street, the people feel the crisis never happened,” Zhu said in a Bloomberg Television interview today in Dalian, China. “It’s not only over-confidence, it’s over- myopic. This is too much.”...

...Zhu said that the financial crisis, which intensified last year after the bankruptcy in September of Lehman Brothers Holdings Inc., seems “not over yet.”

“It’s sort of stabilized from cliff drop,” Zhu said. “But the real economic crisis has just started.”

Zhu’s concern over the U.S. economy was echoed today in Dalian by Morgan Stanley Asia Chairman Stephen Roach. In an interview at the World Economic Forum in the coastal Chinese city, Roach put the odds of the U.S. leading the world into another recession at as high as “one in three.”...

[jk]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

Sept. 10 (Bloomberg) -- Bankers on Wall Street are suffering from “over confidence” and are “myopic” in the face of a continuing financial crisis, Bank of China Ltd. Vice President Zhu Min said.

“You go to Wall Street, the people feel the crisis never happened,” Zhu said in a Bloomberg Television interview today in Dalian, China. “It’s not only over-confidence, it’s over- myopic. This is too much.”...

...Zhu said that the financial crisis, which intensified last year after the bankruptcy in September of Lehman Brothers Holdings Inc., seems “not over yet.”

“It’s sort of stabilized from cliff drop,” Zhu said. “But the real economic crisis has just started.”

Zhu’s concern over the U.S. economy was echoed today in Dalian by Morgan Stanley Asia Chairman Stephen Roach. In an interview at the World Economic Forum in the coastal Chinese city, Roach put the odds of the U.S. leading the world into another recession at as high as “one in three.”...

roach has been a longstanding perma-bear - eventually right but worthless on timing. i think zhu is right, our markets are running on fumes, but they're running. for the moment. [but i'm a longstanding perma-bear myself- eventually right but worthless on timing.;)]

[hayekvindicated]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

roach has been a longstanding perma-bear - eventually right but worthless on timing. i think zhu is right, our markets are running on fumes, but they're running. for the moment. [but i'm a longstanding perma-bear myself- eventually right but worthless on timing.;)]

While I dislike conspiracy theories, there is something about this market that is very odd. There have been a number of days when the market has tumbled a lot and then rallied to end up in positive territory. That is quite odd. It's almost as though there is an "invisible hand" propping it up whenever it starts to go down.

This market could keep going higher although the index of sentiment shows about 80-90 percent of the market as bullish. That has got to make one bearish short term. I am waiting for a correction to buy some nat gas stocks. But it just doesn't seem to be happening. Fortunately, I hold Sterling which is actually rallying a LOT against the USD!!! :eek:

[jk]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

While I dislike conspiracy theories, there is something about this market that is very odd. There have been a number of days when the market has tumbled a lot and then rallied to end up in positive territory. That is quite odd. It's almost as though there is an "invisible hand" propping it up whenever it starts to go down.

This market could keep going higher although the index of sentiment shows about 80-90 percent of the market as bullish. That has got to make one bearish short term. I am waiting for a correction to buy some nat gas stocks. But it just doesn't seem to be happening. Fortunately, I hold Sterling which is actually rallying a LOT against the USD!!! :eek:

a LOT of people are waiting for a correction to buy commodities. which means it won't happen, or the correction will be a lot worse than most are expecting.

[Sapiens]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

a LOT of people are waiting for a correction to buy commodities. which means it won't happen, or the correction will be a lot worse than most are expecting.

Think about what has to happen for that correction to occur.

With no new credit being created, and debt service cash flow demand fixed by contract, what will give out?

Right now people are depleting savings, that's right, bankruptcies.

[touchring]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

a LOT of people are waiting for a correction to buy commodities. which means it won't happen, or the correction will be a lot worse than most are expecting.

Commodities are now distorted. the chinese are buying up commodities without orders. Buy first and think about what to do with them later.

[GRG55]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

Commodities are now distorted. the chinese are buying up commodities without orders. Buy first and think about what to do with them later.

The idea that, in the midst of the deepest economic downturn and global demand destruction cycle in 8 decades, actual Chinese buying is what is propping up commodity prices makes as much sense as the World Gold Council's continuing fascination with "jewelry demand" as the primary driver of gold prices.

China may have a "fast growing economy", but it's not big enough to single handedly prop up the global commodity complex.

[touchring]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

The idea that, in the midst of the deepest economic downturn and global demand destruction cycle in 8 decades, actual Chinese buying is what is propping up commodity prices makes as much sense as the World Gold Council's continuing fascination with "jewelry demand" as the primary driver of gold prices.

China may have a "fast growing economy", but it's not big enough to single handedly prop up the global commodity complex.

Not all commodities of course, but for some like iron ore, China is the biggest importer and can influence prices directly.

http://www.bloomberg.com/apps/news?p...d=aPNgoOHQhiUI

Iron Ore Imports by China Drop 15% to a Six-Month Low (Update2)
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By Bloomberg News

Sept. 11 (Bloomberg) -- Iron ore imports by China, the world’s biggest buyer, dropped to the lowest level in six months as mills and traders cut purchases on declining steel prices.

China bought 49.7 million metric tons of the steelmaking ingredient in August, general customs said today on its Web site. Shipments were 15 percent lower than the 58.1 million tons in July, according to data compiled by Bloomberg.

Steel prices in China have fallen 18 percent in the past five weeks after an earlier gain spurred record production by mills including Baosteel Group Corp. Declining prices and iron ore imports may help the China Iron & Steel Association argue its case for lower ore prices from Vale SA, Rio Tinto Group and BHP Billiton Ltd.

“Steelmakers have been using their ore inventories instead of importing after steel prices fell,” said Hu Kai, a Shanghai- based analyst with industry publication Umetal.

Fortescue Metals Group Co., Australia’s third-largest iron ore exporter, fell 0.9 percent to A$4.22 in Sydney at 2:50 p.m. local time. Rival Murchison Metals Ltd. fell 3.2 percent to A$1.815.

Falling Prices.

Cash prices for iron ore delivered to China from India have fallen 26 percent to $82 a ton since August, according to Metal Bulletin prices for the week ended Sept. 4. Iron ore from Australia has fallen 28 percent since Aug. 13 to $76.1 a ton yesterday, according to the Steel Index.

And as we now know, China's growing economy is a large part a Command Economy - the central bank will give the command to manufacture that much steel.

[Chris]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

While I dislike conspiracy theories, there is something about this market that is very odd. There have been a number of days when the market has tumbled a lot and then rallied to end up in positive territory. That is quite odd. It's almost as though there is an "invisible hand" propping it up whenever it starts to go down.

Agreed: google Momentum Funds

And take a look at these:

http://www.zerohedge.com/article/car...e-stock-market

http://www.zerohedge.com/article/cor...ities-start-qe

http://www.zerohedge.com/article/qua...right-schedule

http://www.zerohedge.com/article/and...rading-systems

[GRG55]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

Not all commodities of course, but for some like iron ore, China is the biggest importer and can influence prices directly.

http://www.bloomberg.com/apps/news?p...d=aPNgoOHQhiUI




And as we now know, China's growing economy is a large part a Command Economy - the central bank will give the command to manufacture that much steel.

As the maker of roughly 35% of global steel production, China certainly influences the short term volatility of iron ore pricing.

But there's a hell of big difference between short term price swings and the allegations being flung about that "Chinese demand" underpins the entire commodity complex.

[jk]

Re: Bankers on Wall Street Are ‘Myopic,’ Bank of China’s Zhu Says

i've read that much of chinese liquidity pumping has been mis- or re-directed into speculation- that's what's underpinned the rebound in the chinese shares, but also has led to commodity speculation/stockpiling, both by enterprises and individuals. [sorry no links] where else is the chinese stimulus going? building more consumer electronics and clothing factories? [some is going into infrastructure, i know.]