IPFS News Link • China
IPFS News Link • China
Following on the heels of a report that appeared in the Telegraph on the topic,
William Pesek at Bloomberg has recently also written an article about
Charlene Chu (formerly with Fitch, nowadays with private firm Autonomous
Research) and her opinions on China's shadow banking system and the
dangers it represents. The article is ominously entitled “China, the Death Star of Emerging Markets”.
China
has recently made unwelcome headlines, as one of the shadow banking
system's countless 'wealth management trusts' which was evidently
invested in a bankrupt venture (in this case in a coal company –
reportedly a great many such investments in insolvent coal mines exist)
was about to go belly-up and then was bailed out at the last minute.
Here is a recent article by Mish on the trust that was ironically named “Credit Equals Gold Number 1”.
At first it was reported that the trust wouldn't be bailed out, but in
the end its 700 investors were able to 'breathe a sigh of relief' as Tom Holland remarked in the South China Morning Post (SCMP).
However, Holland also cautioned that by bailing out this trust, China
has laid the foundations for a much bigger crisis down the road, as
moral hazard has increased considerably as a result.
1 Comments in Response to How Dangerous Is China’s Credit Bubble for the World?
Load up on Bitcoin and precious metals, now, while you still have the chance to get IN cheaply.
Load up on ammo, as well.