Hark Hark…the heralded Central Banking angels sing...

The seven-day repo rate in China surged to 12.33% from the 8.26% rate two days ago. It has recently traded around 3.30% this year. If this reminds anyone of 2008 it should.

The benchmark rate for funding costs between banks can not sustain these levels…I am quite sure BURNanke is on the job…hoarding more assets, shrinking more floats and creating more collateral shortages to pump assets before the dump...