PBOC Denies It Will Bail Out Collapsed Real Estate Developer While Chinese Property Developer Market Crashes
Bail-outs! The US does it, the EU does it, and now China is doing it. The saying “kicking the can down the road” seems to be the strategy for all central banks. Until one central bank stands up and puts a stop to this we are just going to see this continue.
This chart should also be considered.
HOT NEWS…….
.WED 8:46AM………..JPMORGAN SELLS PHYSICAL COMMODITES BUSINESS FOR $3.9 BILLION……………
THIS should make Irish HISTORY…………….
OR Irish is going to make History,,,,,,,,,,and very Happy
the MANIPULATOR IS CLOSING SHOP……….
If this Real Estate Developer and any others are permitted to default then the moment of reckoning will have arrived for China. We will automatically go to a hard landing scenario and GDP would subsequently plummet triggering a host off unrelated defaults to occur, unemployment to surge, corporates fail and Grey market lending unwind. Property is the cornerstone of the economy there. Without sustainability (despite the criminality and mood of gambling taking place therein) all the rest comes unhinged and the world should expect to fall into recession not long afterward.
On a high note, we will have a scapegoat to blame for our own troubles. It’s all China’s fault!
Al, I have been following your website for years, but I’ve never taken part in a discussion before, simply because I don’t believe I am as informed as yourself and the rest of the posters, due to me being a youngster (24 years old ). That being said, several pundits have been saying that China will become the new superpower going forward. Isn’t better for them to let the deadweight default as soon as possible as to not be a drag on their economy going forward? In the long run, I believe that China will come out of this crisis very strong, simply because they’ve stockpiled the necessary resources and commodities (gold, silver, rare earths, etc)
@Birdman: I wouldn’t be surprised if our “esteemed” politicians are praying for a couple of defaults to happen in China in order to wipe their hands clean of the mess they created here in the USA.
The Federal Reserve should not be involved in the creation or extension of speculative credit, banks that take money from The Federal Reserve should not borrow money for the purpose of making speculative loans, especially for the purpose of carrying loans based on securities. Banking laws should stress who gets money and under what circumstances. DT
THE FED IS BANKRUPT…………..according to an article at KWN…
it is leveraged 71 to 1…..and according to reports in the FED’S papers, it lost money last year of about $53 billion..
http://www.ft.com/cms/s/0/e5590566-ae6c-11e3-aaa6-00144feab7de.html#axzz2wLnHVQAm