Posted on 05/24/2016 6:07:35 AM PDT by TigerLikesRooster
Chinese banks sitting on $1.7 trillion debt time bomb
by business reporter Stephen Letts
Chinese banks are looking down the barrel of a staggering RMB 8 trillion - or $1.7 trillion - worth of losses according to the French investment bank Societe Generale.
Put another way, 60 per cent of capital in China's banks is at risk as authorities start the delicate and dangerous process of reining in the debt-bloated and unprofitable state-owned enterprise (SOE) sector.
Disturbingly though, debt is not only not shrinking, it is accelerating, making the eventual reckoning far worse.
China's overall non-financial debt grew by 15.2 per cent in 2015 to RMB 167 trillion ($35 trillion) or almost 250 per cent of gross domestic product (GDP).
That is up from 230 per cent of GDP the year before and the 130 per cent it was eight years ago before the global financial crisis hit.
The problem is largely centred on China's 150,000 or so SOEs, which suck-up an entirely disproportionate amount of the nation's capital.
(Excerpt) Read more at abc.net.au ...
P!
China...copying the U.S. as usual.
LOL that’s nothing compared to Obama’s debt bomb.
China has highly controlled capital flows. The Chinese Gov’t can write off all the bank debt they want, convert it to equity and then make another $1 trillion in new RMB loans - and there is NOTHING that Wall Street or the likes of George Soros can do about it. They can’t attack the currency, they can’t really short the stocks, and there are no derivatives they can create, buy, or sell.
Sheeeeyit. To Bath House Barry and Paul Ryan that's a rounding error.
-—Disturbingly though, debt is not only not shrinking, it is accelerating, making the eventual reckoning far worse.-—
Silly Chinese - the USA would never do anything so foolish and self-destructive...oh, wait a minute
That’s ash tray change to those chumps!!!
Zackly.
Brewing crisis ping
There is a lot more bad debt than $1.7 trillion.
Those guys are rank amateurs compared to owebama and the republicRats in congress.
Tie this boat anchor around a rapidly aging population with no real infrastructure to take them through retirement and vola,
Wag the dog...
I guess the business of selling prisoner body parts is down. They need to hire some better PR people.
red
China, Italy, Europe....there are a whole bunch of dominoes sawing back and forth in front of the Guiness Book falling dominoes display. All it takes is a single one to drop.
The derivative markets and unfounded pensions will push that up to $100T without a lot of effort.
The dominoes are wobbling.
Emperor Obama: "Amateurs"
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