Iron ore price, page-41624

The intervention is logical and necessary.
This has always been on the cards. What choice do they have?

The fabric and very legitimacy of the CCP is being threatened. The only way to unwind Evergreens Giant mountain of greed and debt is to turn the taps on full and fill the bath up to offset the damage it has caused ( with more and cheaper more readily available debt)

The angry mob the CCP fears isn't the greedy foreign and local billionaires holding perhaps worthless Evergreen bonds, but the average home owner in Shanghai and Beijing who has decided to stop spending money as the home he used to treat like an ATM has suddenly halved in value.

Nothing like a giant flood of cheap money to protect the value of his home and restore his faith that the central gov has his interest. It's an act for the common good. I like it

The irony of this move is delicious- It's straight out of the Fed GFC playbook

The bank of China was always going to turn the taps on and fill the bath up. We all get a drink. God bless the BOC and god bless the average home owner in China.

Never bet against the BOC....

snort snort