Unregulated banks making loans on invisible inventory and now what inventory they did have isn't moving.
Steel sector companies have found themselves particularly vulnerable as economic growth slows in China because many played games with credit lines, bank loans, inventory collateralization and multi-company borrowing schemes.Some steel manufacturers and trading firms used product inventories as collateral for bank loans, then increased their money in hand by convincing another bank to exchange the lenders' acceptance bills for cash.
Outside the black market, there are no unregulated banks in China, or anywhere else for that matter.
Kate, every time you headline with "It's Probably Nothing"
I die a bit inside.
It never is,the death part, but I'm a bit older this Month at 37.
So Be It.
Sometimes one has to die inside to really live.
Cheers.
dwright
Isn't there laws against this type of thing? If not,why not?
Mao Stlong* Lepolt.
Of "the "Great Helmsman" of the Chinese".
Mao's corpses number upwards of 100 million.
"Chairman Mao - the "Great Helmsman" of the Chinese
revolution - still holds a dominant position at the heart of China's capital, Beijing - at least symbolically." (BBC)
*Ex-Liberal leader Rae's uncle, c/o Red China.
Posted by: phil at September 9, 2012 4:08 PM
Do you never get tired of being bitter?
I guess you get off on it.
Here's another headline:
We are ERECTING a plaque on Dundas St. Toronto.
You are invited.
d
phil is just PO'd because s/he/it isn't a big enough bum raper to get some easy bucks from his masters.Try harder,phil baby.Your mother have any kids that lived?
dwright...phil wouldn't have a clue what to do with that erected plague.
There seems to be a tendancy to treat China as it stands, as a monolith. Historicaly this may be a mistake.
It may end up like a gigantic version of Yugoslavia,with internal ethnic divisions pulling it apart.
It could be the ultimate paper tiger.
There seems to be a tendancy to treat China as it stands, as a monolith. Historicaly this may be a mistake.
It may end up like a gigantic version of Yugoslavia,with internal ethnic divisions pulling it apart.
It could be the ultimate paper tiger.
1. China suffers financial crisis and recession.
2. Recession spreads to rest of the world.
3. U.S. tax revenue drops, entitlement claims increase.
4. U.S. tries to borrow more money to make up difference.
5. There's no one left to lend.
6. U.S. suffers fiscal crisis.
Stands to reason that as the USA and European economies implode, that China will lose their best customers and be dragged down also. This could be the worst nightmare for the thousands of companies that outsourced to China. All their eggs are in a communist basket. Wish 'em luck.
who is john galt?
@ rabbit at September 9, 2012 7:45 PM
Agree , but I see the order of disaster going from 6 to 1. Europe and the USA will trigger the melt down and China/India will be the last ones to crash.
peterj:
If it does happen, it'll probably be in a way no one predicts. A Shiite uprising in Saudi Arabia, Iran cutting off the Strait of Hormuz, a rogue trader in a financial company, Michael Moore turning vegetarian and devastating the cheeseburger market, who knows?
nick "It may end up like a gigantic version of Yugoslavia,with internal ethnic divisions pulling it apart."
Ethnic divisions?? But they all look the same. Seriously. Any rising by a minority would be crushed in a long weekend. Ethnic minorities total 8.5% and are dispersed.
@ rabbit at September 9, 2012 10:06 PM
Michael Moore........damned but I love it when someone laughs at impending doom. Good one, now I've got to wipe off my keyboard.
Posted by: rabbit at September 9, 2012 10:06 PM
Yea was awesome.
But have have to make the point that Mike Moore WOULD turn Vagan, to sell another shitty movie.
dwright
It's the zombie bank apocalypse!!! Only for those foolish enough to keep their savings on deposit with such walking dead credit sharks.
Anyone want to buy a forest?