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