Posted on 03/19/2010 5:30:42 AM PDT by TigerLikesRooster
Jim O'Neill Mea Culpa: "Hey I Was Dead Wrong On The Whole Yuan Thing, But... Hey Look Over There, Stocks Are Up"
Submitted by Tyler Durden on 03/18/2010 22:44 -0500
Permabull Jim O'Neill of Goldman Sachs surprises everyone by issuing yet another missive after being dead wrong on the Renminbi a month ago, and very vocally so. The surprise is not in his persistent frothiness (the man is a singularly male version of an undoubtedly female A. Joseph Cohen after all), or his attempt at mea culpa'ing (we wonder what sport instrument Roach would recommend using on Mr. O'Neill), but that Jim is still at Goldman after the entire Red Devils fiasco. Oh, and speaking of sport, O'Neill joins the Krugman-Schumer team in providing most unwelcome policy advice to China.
Either way, on February 11th, Jim had the following things to say.
" I have returned with a rather dangerously strong feel that China might be close to doing something of note on the CNY. It has been my rising view since the inflation evidence picked up in early January, that the circumstances were starting to change, and in the weeks before this trip, the evidence has built, and a couple of bits and pieces I have thought through, as well as chatting with some interesting people on my trip, I think something is getting closer. Moreover, contrary to our formal forecast of a 5pct rise of the CNY versus the $ starting in a few months time, I have a hunch that as and when they move the exchange rate, it might involve something different, possibly a one off revaluation followed by a broader band...."
(Excerpt) Read more at zerohedge.com ...
P!
What mess does he need to extricate himself from? It’s not very clear.
Now the thing is unraveling even before he gets the ball rolling.
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