But that's tomorrow. For now, Germany will cut the check to Greece so that they can pay German banks and exporters. Spain will, of course, happily resist any condition to OMT application for as long as the market does not push their debt yield over the pain threshold, as happened Friday. What crisis?
China Has Already Soft-landed, Really
Since I said in Time To Buy China, a few weeks ago, and then more recently in Big Changes are Coming to China, it is time to put money back into China. Signs of Chinese economic recovery and smart money returning to China continue to emerge.
Deutsche Bank is predicting faster growth, as reported by The Australian. Goldman Sachs China goes one step further and says outright that China has already soft-landed, windin.com, a financial news/weibo (Chinese tweet) web site.
It is also reassuring that the new leadership in Beijing appears not to be resorting to quick and easy fix of monetary stimulus, as the infamous four-trillion-yuan panic stimulus injected by the out-going Hu-Wen leadership, which has been mediocre in many ways and disastrous in others, in early 2009. Instead, they seem to focus more on gradual policy changes and deeper, structural reforms. The new outlook on China will no doubt change the outlook on world economy, at least for awhile.Have no illusion. Problems and challenges facing China remain enormous. The stock market will remain scandal-laden for years to come. But shorting China, in light of the new background, has become much riskier.