NEW YORK ( TheStreet) -- What has been happening in Chinese market since about a week ago is much more spectacular and profound than the official FOMC taper talk in many ways. Although it may not impact many investors in the U.S. directly, I suspect people interested in monetary policy and financial regulation will talk about it for a long time to come.Overnight Shibor, the Chinese equivalent of Libor, or the benchmark rate for inter-bank short-term borrowing, shot as high as 13.44% on June 20. As a comparison, Libor overnight peaked at 6.88% during the 2008 crisis. Overnight repo rate was even crazier, reaching 25% briefly, though on very small volume. This is full-scale panic by any measure. It has calmed down quite a bit since, with the latest overnight Shibor at 5.736%. Still stressed, but no longer hyperventilating.
China's Unprecedented Proactive Bubble-Bursting
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