<blockquote>'When it comes to global reflation, China continues to play a leading role. Chinese Credit enjoyed a historic 2016 – and, after a record first quarter, China's Credit growth is on track to surpass $3.5 Trillion in 2017.
..
In a precarious “Terminal Phase” Credit Bubble Dynamic, Chinese shadow banking has gone parabolic. Over the past five months, shadow banking assets (compiled by Bloomberg) have expanded $472 billion, or about 35% annualized. For comparison, shadow banking increased about $70 billion for all of 2015. Chinese shadow banking increased $300 billion during Q1.
..
Plenty of worries globally and here at home. Especially after last week’s release of weak March auto sales data, concern is growing that tightened Credit conditions have begun to restrain the U.S. economy. For the most part, quarterly earnings reports from the major banks confirmed a weakening of loan growth. Yet it isn’t clear how much of this is the result of tightened lending standards and waning demand for borrowings, or instead more a reflection of huge corporate debt issuance (issue bonds rather than borrow from banks) and a slowing of big M&A deals.'
- Doug Noland,
"Risk Off" Making Some Headway, April 15, 2017</blockquote>
Context<blockquote>
The Value of Dry Powder, April 17, 2017
'..The same combination prevailed at the 1929, 1972, 1987, 2000, and 2007 market peaks..', December 12, 2016</blockquote>