Sunday, April 17, 2016

China's Giant Bonfire Of Debt
Needs 1 Spark To Become An Inferno
Ponzi lending? In China, 45% of new company debt is raised to pay interest on existing debt! .. "China’s debt bonfire has been building for decades, but recent news and data points to it growing faster than ever with a greater risk of becoming an economy-scorching inferno .. If lenders and investors lose their nerve, the Chinese government will be faced with a lose-lose decision to either backstop the credit system or allow investors to take substantial losses. That could spill beyond the Chinese stock market to the U.S. and elsewhere. The bonfire has been built. It is now only a matter of time before it burns."
LINK HERE to the essay

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