China’s broadest measure of new credit fell to a 21-month low

This is per deliberate policy and will continue to constrain output and employment

China’s Credit Expansion Slows as Li Curbs Shadow Banking

August 8 (Bloomberg) — China’s broadest measure of new credit fell to a 21-month low as Premier Li Keqiang extended a campaign to curb a record expansion of lending that’s added risks to the nation’s financial system.

Aggregate financing was 808.8 billion yuan ($132 billion), the People’s Bank of China said in Beijing today, compared with the 925 billion yuan median estimate of analysts surveyed by Bloomberg News.

New yuan loans exceeded forecasts and accounted for about 87 percent of the total, the most since September 2011. M2 money supply growth unexpectedly accelerated to 14.5 percent.

IPO’s and demand

New issues are, functionally, credit expansion, and support GDP to the extent the funds are spent on real goods and services.

But note that the US housing agencies are turning over their profits of about the same $5 billion/mo to the Treasury, which works against GDP, to the extent those funds would have otherwise have been spent on real goods and services.

At the macro level it’s a continual give and take between deficit spending and the demand leakages.

New US listings at post-crisis high in Q3

August 8 (FT) — The market for new US listings is off to its best third-quarter start since before the financial crisis. A total of 28 companies have raised $5.2bn from US initial public offerings since July, which marks the fastest rate of activity and amount raised in the same period since 2007, according to data from Dealogic.

Greek youth unemployment soars to 64.9pc

The EU is a failed state.

Greek youth unemployment soars to 64.9pc

By Szu Ping Chan

August 8 (Telegraph) — Repeated doses of austerity under international bailouts have almost tripled Greece’s jobless rate since its debt crisis began in 2009, weighing on an economy in its sixth year of recession.

Unemployment rose to 27.6pc in May from an upwardly revised 27pc in April, according to data from statistics agency ELSTAT. This is more than twice the average rate in the eurozone, which stood at 12.1pc in June, and is the highest reading since Greece’s statistics office began publishing monthly jobless data in 2006.

This means there are now almost 1.4m people out of work in Greece, and 3.3m people who are considered economically inactive.

Joblessness in the 15-to-24 age group jumped to 64.9pc, from 57.5pc in April.

Greek prime minister Antonis Samaras will hold talks with US President Barack Obama later on Thursday.

Mr Samaras is keen to secure US approval for stimulus policies for Greece’s recession-hit economy, in contrast to the austerity emphasis preferred by many of its European partners, most notably Germany.

In an interview with Greek newspaper Kathimerini, US vice president Joe Biden said America had “a stake” in Greece’s economic recovery and wanted the crisis-hit nation to stay in the eurozone.

“The administration has always taken the view that it’s overwhelmingly in our interest to have Greece remain a strong and vital part of the eurozone,” he said.

“We have a stake in Greece’s success,” Mr Biden added.