Vice Premier Wong offered uncommon candour this weekend:
“The one thing that we can be certain of, among all the uncertainties, is that the global economic recession caused by the international financial crisis will be chronic,” Wang was quoted by the official Xinhua news agency.
The Chinese stock market seems to agree, see the updates on the Shanghai comp and the Risk trade in Cory’s Twitter Chartroom.
Meanwhile the European debt crisis has gone viral as global banks are dumping their vast holdings of European bonds and not buying the new issue bonds that Euro countries desperately want to sell. This is setting up for a 2008-style credit freeze all over again. “When the noise gets loud it’s better to watch from the sidelines rather than stay in the game”, said one money market manager.” See NYT: Lenders Flee Debt of European Nations and Banks.
Retail investors, please take note: “RISK OFF”.