Take Chinese bulk defaults in your stride

The ANZ commodity team has a note out this morning suggesting that recent defaults by the Chinese in the bulk commodity space is nothing to be worried about.

The note contains some interesting detail and is worth a quick read.

However, the note also argues that the recent weakness is not some harbinger of doom for Chinese growth. Why it is even necessary to fight this bogey I don’t know but I’m not terribly reassured when a forecasting team shifts from a position that “nothing is wrong” to “it’s not the end of the world”. There’s quite a lot of space in between.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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