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China Saved the World in 2008 but now it’s About to do the Opposite

China Saved the World in 2008 but now it’s About to do the Opposite

China is getting the world’s attention again. Unfortunately, this time it’s for all the wrong reasons. Earlier this month, shock waves rippled through the financial market after the Chinese overnight interbank lending rate – Shibor – surged to 8.29% from 5.98% literally overnight. Shibor is a useful proxy for liquidity in the Chinese credit markets and like Libor in Western markets, a sudden spike signals a reluctance between banks to lend to each other.  This could be for a multitude…

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