What happens in China will have 3 times more impact in the world than what happens in the US.
-The Evergrande crisis is a debt crisis (as with subprime).
-The real estate sector represents 20% of Chinese GDP. By comparison, in 2006 (pre-crisis) real estate represented 7% of US GDP.
– China’s property market is clearly in a bubble, and it looks like it is bursting.
-Evergrande is said to be around 300 billion in debt and its stock has already lost over 80%.
– This debt involves over 128 banks, so defaults are a systemic risk.
– According to senior Chinese officials, this bubble could threaten Chinese finance and its economy as a whole.
http://www.investmentwatchblog.com/the-truth-about-evergrande/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 