What’s really happening, and why RRR’s are a warning rather than stimulus, is that the 900 billion is meant to hopefully partially fill in a much bigger and more dynamic funding/liquidity gap that already exists.
This is both how and why come September 16 there will have been six rounds of such “stimulus” (7 for small and medium banks) and still there is a clear need for it. If it is stimulus it isn’t very effective. And the reason isn’t China’s trade spat with the US, it is the massive dollar hole which the Chinese just announced to the world they expect to get even bigger over the coming months.
https://www.alhambrapartners.com/2019/09/06/chinas-next-warning/
