China Entering Financial CRISIS!

Posted in the China Forum

CCP is USELESS and DYING

Surrey, Canada

#1 Jan 28, 2014
Is China About To Plunge Into Financial Crisis?

By Rana Foroohar Jan. 28, 2014
Follow @TIMEBusiness
Is China about to have its own Bear Stearns moment? I have been thinking a lot about this after reading a smart report released today by BofA Merrill Lynch Chinese economist Bin Gao, which looks at the recent debt restructuring at the China Credit Trust Co., a major Chinese financial institution. Just a few days ago, the Beijing based company was in danger of defaulting on a high risk, complex debt product. Then, suddenly, it managed to get its hands on enough money to restructure the half a billion-dollar deal and prevent the debt from going bad. Nobody knows who the investor was—the central government? a worried Chinese billionaire? As if that wasn’t bad enough, the secret bailout comes at a time when intra-bank lending rates in China are rising (which means banks don’t trust each other), market volatility is increasing, and the value of risky debt products is plunging.

Sound familiar? That’s exactly what happened in the run up to the 2008 collapse of Bear Stearns in the U.S. Indeed, says Gao,“the bailout looks very much like the Bear Stearns moment.” The CCT problem isn’t the only red flag out there–over the last few months, there have been a number of investment projects that have gone bad in China, including debt issued by a coal mining company, and a provincial government real estate project. The risk of infrastructure projects going wrong and creating a domino effect of exploding debt, just as the subprime mortgage crisis did in the U.S., is something that TIME warned about over two years ago, in a cover story by Ken Miller entitled The China Bubble.

Are we at that moment now? Economic secrecy in China means it’s impossible to know for sure, but Ruchir Sharma’s column in the Financial Times today makes it clear that he thinks the Middle Kingdom is already in trouble. I’ve talked many times with Sharma, who heads up global macroeconomics for Morgan Stanley about the issues in China, and his metrics tell it best. The most reliable indicator of financial crisis is the pace of growth in debt (not the size, but the pace). Over the last five years, debt levels in China have increased by 71 percentage points. Looking back over the past 50 years, there are about 33 cases of countries with similar debt run-ups—22 of them plunged into a credit crisis, and all suffered a major economic slowdown. Needless to say, I’ll be watching this space very carefully.

Read more: Is China About To Plunge Into Financial Crisis?| TIME.com http://business.time.com/2014/01/28/is-china-...
CCP is USELESS and DYING

Surrey, Canada

#2 Jan 29, 2014
"the secret bailout"

Yes, the CCP is obsessed with secrecy and does not want people to realize the extent of the problem.
CHINA in DECLINE

Surrey, Canada

#4 Jan 29, 2014
That, of course will only make the crash much, much worse.......
CHINA in DECLINE

Surrey, Canada

#5 Jan 30, 2014
"Are we at that moment now? Economic secrecy in China means it’s impossible to know for sure, but Ruchir Sharma’s column in the Financial Times today makes it clear that he thinks the Middle Kingdom is already in trouble."

Clearly!
CCP are LOOTING CHINA

Surrey, Canada

#6 Jan 31, 2014
The FLOOD of dirty money the Chinese Communist Party Cadres have stolen from the Chinese people and are SENDING OVERSEAS NOW tells you they know the END is NEAR for the CCP dictatorship!
CCP are LOOTING CHINA

Surrey, Canada

#7 Feb 3, 2014
http://www.theglobeandmail.com/report-on-busi...

Good piece today!

"China’s shadow banking system, which is responsible for much of the credit buildup, has emerged as a potential landmine. The system has thrived because it paid investors a fat return and used their money to make loans to borrowers who were unable to obtain loans at the low official banks rates. It is believed some of these high-priced loans were doled out to local party officials or governments to fund dubious projects.

If shadow banking loans start to blow up, or Chinese regulators rein in the system, the consequences would be potentially horrendous.

This week’s bailout of the $500-million trust loan, which was backed by loans to a defunct coal company, gave emerging market watchers the jitters. Citing Merrill Lynch figures, the FT reported that about $660-billion of trust loans are due for repayment or refinancing this year.

George Soros, who has a rather good history of anticipating financial ugliness, has turned into a China bear. Quoted in the Guardian in early January, he said:“The growth model responsible for [China’s] rise has run out of steam … restarting the furnaces also reignites debt growth, which can't be sustained for much longer than a couple of years.”

Yes, beware emerging markets, but mostly beware the biggest emerging market of them all."

Yep! It's becoming quite obvious the CCP system is finished!

GOOD!
JUNE FOURTH MASSACRE

Surrey, Canada

#9 May 13, 2014
Housing market in China is collapsing now!

It will surely finish off these insolvent fake banks!
G7nationsWorld WarMongers

United States

#10 May 13, 2014
US economic crimes waged on the world and its few Western Allies G6 nations!

Germany's Finance Minister Peer Steinbuck at the United Nations


"The United States is solely to be blamed for the financial crisis. They are the cause for the crisis and it is not Europe and it is not the Federal Republic of Germany. The Anglo-Saxon drive for double-digit profits and massive bonuses for bankers and company executives that were responsible for the financial crisis.

The long term consequences of the crisis are not clear. but one thing seems likely to me; the USA will lose its superpower status in the global financial system. The world financial system is becoming multipolar.

G7nationsWorld WarMongers

United States

#11 May 13, 2014
US leaser of pact of few western allies G6 nations /Israel - Are world war mongers/Bulllies

"The Global Economic Crisis, The Great Depression of the XXI Century"
by Michel Chossudovsky and Andrew Gavin Marshall
keyword(s)

In a war economy, death is good for business, poverty is good for society, and power is good for politics. Western nations, particularly the United States, spend hundreds of billions of dollars a year to murder innocent people in far-away impoverished nations, while the people at home suffer the disparities of poverty, class, gender and racial divides.
I just said

Jakarta, Indonesia

#12 May 13, 2014
hha funneh.
while all of you guys, me also.
write those comments.
chinese people are trying hard to make their aconomic rises.
G7nationsWorld WarMongers

United States

#13 May 13, 2014
I just said wrote:
hha funneh.
while all of you guys, me also.
write those comments.
chinese people are trying hard to make their aconomic rises.
All welcome to Join the Economic/Financial rise and helping those who rise above poverty!

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