Goldman Sachs cuts China 2022 GDP forecast to 3.0% from 3.3%

China cut rates this week by 10 bps but that's like pointing a garden hose to a tire fire.

The housing market and credit impulse are all very poor. This looks desperate.

“买了三套买四套”

This has gone viral on Chinese internet.

“I call on every comrade to take the lead to buy a property.

If you are on your 1st property, then buy a 2nd one; if on 2nd, then buy a 3rd; already on 3rd? There’s always room for the 4th.”

Now let the buying begin. pic.twitter.com/veieI3cD6V

— Hao HONG 洪灝, CFA (@HAOHONG_CFA) August 16, 2022

Next thing you know, everyone will buy all the houses and we'll be back to real communism.

Also from Goldman Sachs:

our subjective probability that the economy enters a recession in the next 12 months is the highest in the eurozone (60%) and the UK (35%) followed by the US (30%), Canada (30%), and Australia (25%).

/EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term