Chinese Banks are Dorian Grays

More and more people are coming round to the minority view that the new Chinese leadership were just trying to frighten the money monkeys. Now there are bargains to be got.

I no longer have the subscription to read the article but more or less you can guess what the report is about: the banks are now cheap. Perhaps and for as long as the game lasts and it can be quite a while. Imagine it lasting very long, only longer.

To me the Chinese without the check and balances we are familiar with have used their legendary inscrutability and shrewd to set themselves up for a Dorian Gray game. By now nobody asks what happened to those bad assets even as they went on to pile on more.

Until recently short sellers must take the lessons from the wounds that suffered for a long time shorting the JPY and apply that to China. Few people are prepared to see China as Dorian Gray because the Chinese leaders can afford to play the game. Along the way more and more who had recognized this would also somehow forget. I hope Temasek remembers.

You know it will end but not when. The fate of those who like to collect skeletons in hidden cupboards.