China's Impending Debt Crisis

[TR1982]

Good article here about the worsening situation in China. SHIBOR is spiking again, and China's yield curve is starting to invert. Bad news.

http://qz.com/96895/the-scary-reality-of-chinas-debt-crisis/

China’s massive stimulus from 2009 to 2011 sunk money into projects that are generating little or no returns. The continuing gush of credit allowed companies to paper over these losses by covering their bad debt with new loans. That combined with the fact that in the last two years, much of those loans haven’t appeared on bank balance sheets, and have instead been issued through shadow lending, has obscured the scale of China’s indebtedness. But whatever the size, it’s now big enough that the system needs colossal amounts of liquidity even to keep above water.

 

[ONW]

Bad news for whom?

 

[DEACisGO]

Like it or not, if China's economy tanks it will affect the the rest of the world.

 

[wfumike02]

So if we have a shit-ton of debt, with a substantial chunk of that held by China, who holds china's debt?

 

[RJKarl]

AIG will use it as collateral for its products. Then they will ask the government to bail them out when they go belly up.

 

[Liquid Karma]

AIG will use it as collateral for its products. Then they will ask the government to bail them out when they go belly up.

Remember all those times you claimed you never start shit with people?

 

[ONW]

So if we have a shit-ton of debt, with a substantial chunk of that held by China, who holds china's debt?

Switzerland

 

[ChrisL68]

China's debt is all public.

 

[RJKarl]

How about Los Zetas? If you don't pay them.......

 

[OGBDeacon07]

Yesterday was not a good day to be a Bank of China customer...

Largest Bank in China ‘Paralyzed’ on Sunday

http://www.theepochtimes.com/n3/125877-largest-bank-in-china-paralyzed-on-sunday/

 

[DeaconCav06]

Bad news for whom?

One billion consumers of us products will have less money to spend.