I don’t know if that is ‘good’ or ‘bad’.........🤷♂️
It further dumps China's economy into a long-lasting recession.
All money is a claim on debt. With Evergrande collapsing it means that debt will never get repaid - so the claims on it will be worthless - meaning the money supply in China will take a massive hit.
Less money against available goods and services will lead to major recession, or even depression if bad enough.
I don’t know if that is ‘good’ or ‘bad’.....
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Bad, very bad. All the world’s financial systems are now tied together, in one way or another. No telling ( they will not) how much Goldman, Morgan, etc and other financial giants had interest in them.
Do remember Bear Sterns? “ Blamed”- noted as the first to start the dominoes falling in ‘08?…..BS, first was a Bank out of Scotland that Bear Sterns was deeply invested in….silver contracts if I remember correctly.
All that said, should China bail out Evergrand, it means much less money spent on purchasing US debt notes, more Yuans printed, and a host of other consequences
So before the “ bad China” crowd starts celebrating , be very careful of what you wish for….it will in some form effect the global financial system.