BY ROBERT GUY
I want more stimulus and I want it now!
Spoiled by the easy riches delivered by a 60% rally since the start of the year, China’s growing swarm of the retail traders have looked more and more like petulant brats with their demands that Beijing open the monetary policy spigot ever wider to sustain what many have come to believe is a perpetual money making machine offered by the nation’s stock markets.
Unfortunately, it appears the People’s Bank of China has bent to the will of the mob and created a perception that monetary policy in the world’s second largest economy can be dictated by the direction of the stock market.
Worse still, it sends a signal that Beijing has reverted back to its old playbook of tapping the monetary policy accelerator every time attempts to rebalance the economy become too hard or the public whining becomes too high pitched.
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