Following a year of historic routs in the hedge fund space, yesterday we pointed out that after the new year's break, it was time for the pain among the active investors to return:
Time for the first hedge fund liquidation of 2016
— zerohedge (@zerohedge) January 4, 2016
After yesterday's historic -6.9% rout in the Shanghai Composite, which saw the first new marketwide circuit breaker trading halt applied to Chinese stocks (on its first day of operation), many were wondering if the Chinese government would intervene in both the once again imploding stock market, as well as China's plunging and rapidly devaluing currency.
Some sobering words about China's imminent crisis, not from your friendly neighborhood doom and gloom village drunk, but from BofA's China strategist David Cui.
Excerpted from "2016 Year-Ahead: what may trigger financial instability", a must-read report for anyone interested in learning how China's epic stock market experiment ends.
A case for financial instability
Submitted by Michael Lebowitz via 720Global.com,
“It’s self-defeating to use the wrong monetary policy.” -Ben Bernanke