New loans grew more than expected on the mainland last month… The monthly total grew to 948.7 billion yuan, compared with July’s total of 463.6 billion yuan, the central bank said. It beat expectations of 750 billion yuan from analysts polled by Reuters.
I like recessions. Let me repeat this in case you think your eyes have deceived you on this page. I like recessions. I think they do any economy an enormous amount of good.
The problem is that no-one ever changes direction in boom times. Whatever any business or industry is doing when things are going well, it is all just full speed straight ahead, pedal to the metal, don’t bother yourself with anything else going on around you. There is money to be made. Grab it while you can.
But economies have to change direction from time to time, just as racing cars do, and any racing driver who is still going top speed when he comes to a sharp bend in the track is in for serious trouble. Likewise economic performance. There are times when it is best to slow down.
This post was published at Zero Hedge on Sep 18, 2016.