Ting Lu, China economist for Bank of America-Merrill Lynch, says (via Business Insider) that the money and loan growth in China for March (1 trillion yuan) is very positive for markets. Lu said that the breakdown of new loans in March suggests a rebound in home sales. He also said:
- The worst is over and the economy began bottoming out in March.
- Loan demand is picking up. Low new loans in January and February mean higher new loans in coming months.
- Capital flight has been reversed.
- Policy easing will be continued.
Great timing: Ting Lu offered the “pearls” above at the same day that the World Bank cut Chinese GDP forecast to 8.2%.
What’s the best comment for the story above?
a) Ting Lu’s IRA account is all tied into Chinese internet stocks
b) Ting Lu is trying to sell his vacation home in Shanghai
c) Ting Lu’s uncle is a real estate agent in China
d) why do we still listen to BofA Merrill Lynch?
e) All of the above
C’mon, some friday humor doesn’t hurt anyone…