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http://www.marketwatch.com/story/china-consumer-business-sentiment-slips-survey-2011-09-16

http://www.marketwatch.com/story/china-consumer-business-sentiment-slips-survey-2011-09-16

Trichet: Son, we live in a world that has prices, and those prices have to be guarded by men with bonds. Who’s gonna do it? You? You, Sylvia Wadhwa? I have a greater responsibility than you could possibly fathom. You weep for Lehman Brothers, and you curse Ben Bernanke. You have that luxury. You have the luxury of not knowing what I know.

http://krugman.blogs.nytimes.com/2011/09/11/the-truth-europe-cant-handle-the-truth/

Stocks have climbed for two days. Some reasons I’m happy to take the other side of that trade, including declines in FX risk trades:

• USD/JPY is still falling
• Politics will be messy on jobs stimulus program
• Seasonals. Sept is a bad month for risk

The number one reason is that there has been no good news. It’s just a melt up in a quiet market. The best news that comes to mind from this week is talk that Greece is likely to receive the next tranche of aid. And that came at the same time as projections for growth were cut and deficits hiked. That being said, if we can get through US retail sales in the day ahead, the releases of the beaten down Philly Fed and UMich consumer sentiment on Thurs and Fri are more likely to boost sentiment than hurt it.

http://www.forexlive.com/blog/2011/09/14/a-few-reasons-not-to-believe-in-this-risk-rally-and-one-reason-to-wait/

It all started yesterday afternoon, with a Bloombergblast reporting that China might buy Italian bonds. Markets soared. The blast cited an FT article which no one could find online. The FT also denied that it had published such an article. Markets tanked.

We got to the bottom of this, establishing that theBloomberg reporter responsible for the report had seen a preview of an FT article on the topic. That article was published later in the day.

Then today, Reuters cited Italian officials who said the talks centered around Chinese industrial assets, not bond purchases. The markets seemed unfazed by this news.

Ilargi: If anyone can see China buying up huge amounts of EU periphery debt, good luck. Here's thinking the Chinese would demand conditions that no country that is still part of the EU could give in to. Sure, China has European bonds, like it has US bonds, but propping up Greece, Italy or Spain at this point would be a great risk, for which "adequate" compensation would be demanded. 

Besides, the ECB has bought well over $100 billion in periphery paper recently, and how helpful has that been? It's not like China would spend its entire foreign reserves on the topic, and it needs its printing press to keep the domestic Ponzi going. Hard to see as a life saver, and probably unfunded.

http://theautomaticearth.blogspot.com/2011/09/september-13-2011-he-said-she-said.html

http://online.wsj.com/article/SB10001424053111904353504576568241578833756.html?mod=rss_about_china

http://online.wsj.com/article/SB10001424053111904353504576568241578833756.html?mod=rss_about_china

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