Above is a must watch video interview on CNN with Patrick Chovanec, an associate professor at Tsinghua University in Beijing, talking about the mounting bad debt problems in China, and the likelihood of the Chinese economy experiencing a debt crisis, similar to that transpiring in Europe, or a replay of Japan’s ‘lost decade’.
Readers interested in this issue are also encouraged to read this article by The Diplomat on China’s ticking debt timebomb.
He talks about the rolling over bad debt that doesnt show up. Now havent the Chinese done this in the early 90s, late 90s, early 2000′s and now are doing it again. Doesnt this cause problem later on?
Thanks for the link UE!
[...] in Japan. China stimulus optimism continues to rise, however, I suspect recent announcements will lead to an intense focus on growing bad loans next year. Major European indices are mostly higher, boosted by a +1.2% gain in Italy. The European [...]
[...] Chovanec on debt [...]