Tough Choices for Banks and Students

Maintaining the stimulus policy would require a continuation of extremely generous commercial bank lending, writes Michael Pettis, quoting Lu Pei, an economist writing for Caijing. And that while companies seem to be in a rather weak position to finance debt with earnings. The banks may continue to pump money into the economy, putting up with defaults and inflation – or limit their loans further down this year, thus triggering an outright “hard-landing”. The former approach can only work if the duration of the global slowdown is short and light, writes Pettis.

Meantime, the college entrance exams continue – many candidates were reportedly tested on H1N1 flu before being allowed into the exam venues. Premier Wen Jiabao encourages students to find grassroot jobs in less developed regions.

Four Modernizations: hard landing in the countryside

That might be an individual hard landing, as Xiao Gongzhu, currently spreading scientific knowledge in the countryside, has found out.

Related: John Garnaut on Recovery, Huang Yasheng on white-collar jobs, February 20

Sheep’s Cold

The BBC describes it as an Austrian phenomenon – but it is here in the German flatlands, too. No snowfalls, but temperatures around ten degrees celsius, which is a strong contrast to the early summer in May. Global warming may have pushed the summer further into the first half of the year, but the “Sheep’s Cold” or “Schafskälte” is still a reliable stage in early June – it comes almost every year.  Wind often fresh and cool, from Northeast.

Sheep shearing shouldn’t start before June 15 – if the farmers love their sheep. Antibiotics would be a poor alternative.