Fed or the PBOC is the best hope for a bolt of lightning
As bad as this market rout is, I don't think it will take a miracle to stop it. This isn't 2008 when banks were collapsing and the economy imploding.
We know that the US economy is muddling along. China is less transparent but there is no sign of a crash.
The PBOC isn't constrained by timing -- they have no fixed policy announcement dates -- but they risk is that move is viewed as a sign of panic. Then again, with markets already in a tizzy, it might be a risk worth taking.
The Sept Fed funds futures contract has fallen to just a 24% chance of a hike. Why not remove any doubt?
