Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe Community Center
Current Events
China's Evergrande Problem
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="vantexan" data-source="post: 5007802" data-attributes="member: 24302"><p>Which is exactly why it has raised a lot of concern lately. But by imploding I didn't mean stock price. Lehman Brothers was over $600 Billion in debt when it finally closed its doors. Burned a lot of investors and nearly caused a domino effect that would've caused an economic collapse if the government hadn't stepped in. Not only is Evergrande poised to do the same but China's government so far has signalled it won't rescue it and that the CCP wants to rein in capitalism and put a more hard line socialist state in place. If the CCP does assist anyone it's likely to be Chinese banks while foreign investors are left holding the bag. Which is why we're seeing foreign stock markets reacting. Could get very interesting when Evergrande's bond payments are due and it doesn't pay them starting Thursday. And a lot of analysts are saying that it's the tip of the iceberg because a lot Chinese companies have played fast and loose with the rules and there's been a lot of foreign investment in China because that was where most of the growth has been in the last two decades.</p></blockquote><p></p>
[QUOTE="vantexan, post: 5007802, member: 24302"] Which is exactly why it has raised a lot of concern lately. But by imploding I didn't mean stock price. Lehman Brothers was over $600 Billion in debt when it finally closed its doors. Burned a lot of investors and nearly caused a domino effect that would've caused an economic collapse if the government hadn't stepped in. Not only is Evergrande poised to do the same but China's government so far has signalled it won't rescue it and that the CCP wants to rein in capitalism and put a more hard line socialist state in place. If the CCP does assist anyone it's likely to be Chinese banks while foreign investors are left holding the bag. Which is why we're seeing foreign stock markets reacting. Could get very interesting when Evergrande's bond payments are due and it doesn't pay them starting Thursday. And a lot of analysts are saying that it's the tip of the iceberg because a lot Chinese companies have played fast and loose with the rules and there's been a lot of foreign investment in China because that was where most of the growth has been in the last two decades. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe Community Center
Current Events
China's Evergrande Problem
Top