I’ve been hearing as of late of a big credit crisis coming due to under-performing loans, property speculation and wealth transfers out of China.
What’s going on in China, it’s not another Greece style debt crisis in the making, is it?
Here are some links
My (admittedly limited) understanding is the Chinese Central Bank was concerned with the high amount of debt in the system and essentially shut off its borrowing to banks.. Essentially deliberately creating a Lehman type event to signal to Chinese financial institutions that they need to ease back on the credit creation that was going on. I don’t think the Chinese state is particularly concerned about financial institutions going to the wall, so we won’t see the same sort of bailouts that happened in Europe and the US.