As China Orders Its Smaller Banks To Load Up On Cash, Is The Biggest Ever “Unlimited QE” About To Be Unleashed?

Monday, February 10, 2014
By Paul Martin

by Tyler Durden
ZeroHedge.com
02/10/2014

The Chinese new year may be over which following a last minute bailout of its insolvent Credit Equals Gold Trust product was largely uneventful, but already concerns about domestic liquidity are once again rising to the surface following reports that China’s banking regulator ordered some of the nation’s smaller lenders to set aside more funds to avoid a cash shortfall, which as Bloomberg notes signal rising concern that defaults may climb. Which brings us to the question du jour: is the PBOC is laying the groundwork for what developed markets would call an open-ended liquidity injection which can be use to bail out one and all banks on an a la carte basis. Or, in the parlance of our times, the biggest QE bazooka of all because with total banking assets of nearly $25 trillion, said bazooka better be ready to fire at a moment’s notice?

The Rest…HERE

Leave a Reply