The reason why China’s action was a two-day wonder at most (except for penny stock punters — Catalyst index was down 6% on Friday): the tightening was “peanuts”. So markets decided to resume the “drugs, sex and rock-and-roll” partying; all aided by alcohol: “Kum pei, Bottoms up, Mud in yr eye”? Shades of Charles Prince’s infamous July 2007 quote? “As long as the music is playing, you’ve got to get up and dance. We’re still dancing.” the then CEO of Citi told the FT. The response at the time.
And yes, I know the Western markets took a fall on Friday. But let’s see what China does on Monday, not the decadent bourgeois West.
