It Begins... Another High-Yield Chinese Shadow Banking Trust Defaults | Zero Hedge

Posted by straightlinelogic 12 years ago to Economics
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Those of us watching for the end of the world have to keep our eyes peeled all over the globe. The Great Depression really got rolling after an Austrian bank default, and the 2008 crisis got its kickoff with two Bear Stearns hedge funds going drano in 2007. China's financial system is a house of cards so it may knock us over the edge, although there are plenty of other candidates. One man's asset is another man's debt...

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  • Posted by Robbie53024 12 years ago in reply to this comment.
    I seriously doubt it. Too much downside from a governmental perspective and too little upside. They will wash away the obligations and "start fresh" regardless of the devastation that it causes the masses.
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  • Posted by Robbie53024 12 years ago in reply to this comment.
    Only if you believe that someday they might increase in value. My bet is they will be voided, in which case they truly do go to zero.
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  • Posted by Robbie53024 12 years ago in reply to this comment.
    And while I appreciate that you think it is spot on because you agree with it, it is actually spot on because it is an accurate portrayal of what we can expect - and soon.
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  • Posted by straightlinelogic 12 years ago in reply to this comment.
    I think your economic analysis is spot on because I happen to agree with it. My only point of contention would be that I don't think values will go to zero, but I do think they will fall far enough to lead to the consequences you predict.
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  • Posted by richrobinson 12 years ago
    Good pick up straightline. Info out of China is always a little suspect which means to me that bad news may be worse news. The US numbers are looking bad also.
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