surprisingly aggressive cut in the bank reserve requirement Sunday

[SASKFARMER3]

China’s central bank made a surprisingly aggressive cut in the bank reserve requirement Sunday, allowing banks to lend more money, in order to give the flagging economy a boost. The People’s Bank of China slashed the reserve requirement ratio–the portion of deposits that banks need to keep on reserve with the central bank–by a full percentage point. It was the biggest such move since late 2008, according to analysts. However, the central bank wasn’t finished there, offering an array of targeted reserve requirement cuts aimed at helping small businesses and farmers.

The central bank has cut the reserve requirement on deposits twice since February and trimmed interest rates twice since November. The latest move, which takes effect Monday, followed the government’s announcement last week that first-quarter economic growth was 7% from a year earlier, the worst performance in six years. It also followed Premier Li Keqiang’s visit last week to the headquarters of some big state banks where he called on the nation’s bankers to try to lower the borrowing costs for companies struggling to adjust to a weaker economy.
So is their cracks in other countries as well. In Canada I don't believe were starting to pick up or is the USA.

[tweety]

Oh look, walmart just rolled back prices. How do they do it lol

[westernvicki]

China needs consumers and home grown are best.

[SASKFARMER3]

Another day another troll ah tweety your up early.

[stonepicker]

I don't think 7% growth is a crack in anyone's economy. Most countries would love to have economic growth like that.

[SASKFARMER3]

I think its slowing down over their but no their not even close to us or the USA. Read about a super highway from China to Pakistan that is going to cost 46 billion once complete. That is how a country moves product. If their is a mountain range in the way go under or around or over the top but get product moving. In Canada Industry sits around and studies and discusses the problems as farmers cant get product out of country.
Ah Canada.

[farmaholic]

Cotton, chime in and explain the fact (not theory) of unsustainable exponential growth. I once said the least we could/should hope for was zero growth. But I am not an economist or probably don't understand the effects....

[westernvicki]

In Canada cheerleaders reward this type of progress.

[cottonpicken]

Anything with a growth rate has a doubling time and the sum of the doubling is great than all previous doublings. To find the time use the rule of 72.


China was probably forced to do this because of the gargantuan amount of loans they lent out and the non performing ones are probably going up. They'll end up having their own Lehman moment soon enough

[tweety]

Its always funny when old guys like SF3 use urban words like troll and don't know what they mean.

[sumdumguy]

Ain't that a fact, Vicki? Guess love is blind.

[cottonpicken]

There are rumours cycling that a derivative event has popped somewhere and the fed is injecting massive amounts of treasuries to be used as collateral through its reverse repo program basically propping up a big bank somewhere

[sumdumguy]

Think we will know when a bank goes under this time? I don't think they will allow another Leyman crash event.

[cottonpicken]

Yes I think you are right,from now on an probably since 08 things will be swept under the carpet until it cant be. Stats can be massaged and out right lied about.