On China, Shadow banking. steel and more

Posted: March 12, 2014 in Uncategorized
Tags: ,

Well, a lot is going on in China.

In a short summary the Chinese Government is one of the smartest on earth, but the challenge they have to deal with are also the biggest in the world.

How it will end will be more or less a toss of a coin.

– The failure of the Solar Company (a shadow banking product) it clearly states that the PCC has decided to really start fighting the shadow banking issues. One company will not start a chain reaction – but there are a lot around with products with end of life cycle in April/May.

A beautiful and simple article about shadow banking, a classic Ponzi scheme

Five charts to explain China’s shadow banking system, and how it could make a slowdown even uglier

– The slump in iron ore (and metals in general) is a by-product of new China starting to address overcapacity in steel (attention Australia) and pollution. Again Steel Industry has a lot of shadow lending in it.

So now we just wait the media to start spreading the panic 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s