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.
Originally posted by MDDoxs
Made in china has become a curse.
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.
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.
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.
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.