Chinese Financial System on the Brink of Collapse

Chinese Financial System on the Brink of Collapse

Nouriel Roubini said some time ago that 30% of Chinese bank loans will become non-performing, which will shake the foundation of the banking system in China. Well, it seems that he knew what he was saying, unfortunately. According to a report by PriceWaterhouseCoopers cited by ZeroHedge, matured and overdue loans reached 489 billion yuan ($77.6 billion) at the end of the second quarter of this year.

At the end of 2011, these loans, likely to become overdue, were only 112.9 billion yuan ($17.8 billion), which means that in just six months, the amount of overdue loans increased by 333%. These loans can not yet be declared bad because the definition of bad loans takes into account credit and interest overdue for more than 90 days and/or judicial proceedings have been initiated against the operation or the debtor.

Lovely.

Hell, maybe the Mayans were right after all. This is the last year...

:shk:

well... I never imagined THAT one or what that would mean... hahaha...oh my..

can you imagine??? no more lead in our toys?? oh the humanity..

but really, that would be one hell of a chain reaction, felt here for sure..

reply to post by loam


I smell an economic chain reaction about to occur and with a global economy rotten to the core, it won't take much for the house of cards to come crashing down.

This debt based economy was always going to eventually pop, hopefully a new system can spring forth if and when a truly devastating collapse occurs.

Made in china has become a curse.

If anyone thought that China would be a serious player within the 21st century then all I have to say is:

Congratulations for completing the school of Zionist brainwashing and fear mongering. Everything China has is fake, empty, hollow and nonexistent.

Carry on.

Originally posted by MDDoxs

Made in china has become a curse.

Made in China is a CURSE alright. I have CURSED every damn Made In China product that I have ever owned. Have to buy several of the same item over and over again before just buying AMERICAN once and being DONE with it.

&%$#! Made in China products!!!

The only thing more "collapsible" than this financial situation is the products coming out of China.

How do people ignore this kind of stuff.This is not fear mongering this economy crash stuff is very possible.

reply to post by loam


myohmy. Good catch.

s&f

So what can get them out of trouble?

Beuller? anyone? anyone?

war perhaps?

That number doesnt seem that big, but maybe its because Im used to our own government spending trillions of dollars.

::shruggs:: I wont pretend to know more about this than I really do.

reply to post by Common Good


Just take a page from the American text book. Not enough money? Just print more!

reply to post by YourWIFI


Just wondering, what are you posting from, an American made phone or laptop? Is there such a thing?

Don't we owe a ton of debt to China? Will they start calling in their loans with US?

Originally posted by TheOneElectric
If anyone thought that China would be a serious player within the 21st century then all I have to say is:

Congratulations for completing the school of Zionist brainwashing and fear mongering. Everything China has is fake, empty, hollow and nonexistent.

Carry on.

Give it a rest.

For years many here were dead sure Communist China's success was going to break the back of America and be the next economics super power as being part of the evil "Zionist Banksters" global plan. Now that they are on some shaky ground it's all part of the evil "Zionist Banksters" global plan. It's hard sometimes to keep up with the latest conspiracy angle

As far as whats transpiring now with their system many here have been mentioning this growing possibility for a few years now and most of the time been scoffed at. They think this is bad.

Just wait until inflation raises it's ugly head in China full bore......

I currently work in the finance sector and I can tell you this is total BS. LOL!!
Actually the Chinese have been very good at economic management in the past decade and have overseen the largest economic growth the world has ever seen.

The US is at greater economic risk with the massive 16+ trillion dollar debt which came close to default because of not so brilliant politicians. It could be worse not as bad as Japan or Greece. Greece, Spain, Italy are close to FUBAR if you really want to know about the global economy.

Just wait and see what happens when/if China decides to start calling on it's loans. While the US does not owe China as much as people think, it is enough that we are not able to pay it back at this time.

This is not good for China, but it's not good for us either.

Originally posted by JimTSpock
I currently work in the finance sector and I can tell you this is total BS. LOL!!
Actually the Chinese have been very good at economic management in the past decade and have overseen the largest economic growth the world has ever seen.

No offense but I've read that brochure too

The US is at greater economic risk with the massive 16+ trillion dollar debt which came close to default because of not so brilliant politicians. It could be worse not as bad as Japan or Greece. Greece, Spain, Italy are close to FUBAR if you really want to know about the global economy.

Time will tell how accurate your assessment is. In the meantime, many of the loans wont be able to be paid because there was too much Government supported construction of office high rises, apartments and what not with not enough Chinese with the income level to afford them because the Government desperately wanted to keep up the facade of 8% growth so there they sit, vacant......

reply to post by loam


Loam, I remember a couple of days ago you created a thread about similar crisis in the US:

Over $120 Billion In Federal Student Loans In Default

If you actually look at the figures and the state of the loans in question, it's quite clear the US Student Loan market is in and much worse shape, the extent and size of the crisis is much worse. It comes close the state of the US housing market right before the mortgage crisis.

So for those fools saying this will bring China down into a pile of dust, I think you better start looking at your own problems before you start throwing around such ridiculous statements.

I doubt there will be a collapse. Shanghai has been a model for burgeoning capitalism for years.

I see perhaps a correction, a recession. And in that, I'll be interested in how they adjust/correct for that.

Zionist plot? Might as well blame Nirubu if anyone is going there.

The whole Chinese business model is based on predatory trade practices, and that's why the world is ganging up on them, Norman said, adding that China is facing large amounts of unemployment and social unrest, and their banks are sitting on huge assets of non-performing loans. Norman estimated that the actual cost of oil is between $10- $20 a barrel, but when US citizens shell out $4 a gallon at the pump, it's collateral damage or the price we pay to engage in an economic rather than physical war with China.

Start at the 13 min mark.

reply to post by beezzer


I think you need to be more specific about what you mean when you say "collapse". There's a moderate chance that the loans being discussed will have a high enough default rate that it will result in a considerable debt crisis. But by no means would it collapse the Chinese banking system. The United States has ALREADY experienced a huge bubble implosion back around 2008, and that collapse was even worse than this one could be, judging by the numbers. But the United States did not "collapse" and the banking system is still as it was, with perhaps a few small changes. If you were saying this is being over-hyped, you are completely correct in my opinion.

in holland we had an topic on MSM about the ghost city's china had build (33) and need to be re-financed...
goes about trillions of dollars....