BL

What's the end affect of virus on China. Banking crisis ?

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(edited)

It has been known that China's banking system had extraordinary level of outstanding credit/debt.  

The standard retort was thay they had large cash reserves China accumulated to buffer China against any financial problems.

Last time I checked (2019) China's credit/debt was 330% of GDP.  Hong Kong is 900% ! 

Since then China has slowed down.  China went thru a tariff war, with $250 billion still bearing U.S.  tariffs.  Then of course the coronavirus.  

How much have their cash reserves gone down ?

To battle the virus economic downturn the country has provided billions in easy credit.

How big is the credit bubble now ?

How big does it get fighting virus downturn.l? 

My opinion . . .  Expect World Banking crisis with China and Hong Kong as the epicenter.

PS Europe banks never really properly re-capitalized from the 2008 financial crisis. Italy first to go down. 

 

Edited by BLA
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Now China is still viewed as the main victim of the coronavirus crisis. But this could change in the coming months. As the rest of the world is getting  into the coronavirus crisis, China is slowly getting out. And guess who will mainly benefit from the low oil prices ?

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(edited)

46 minutes ago, Guillaume Albasini said:

Now China is still viewed as the main victim of the coronavirus crisis. But this could change in the coming months. As the rest of the world is getting  into the coronavirus crisis, China is slowly getting out. And guess who will mainly benefit from the low oil prices ?

China is slowly getting out ? 

I don't know about that. 

CCP are liars.  Care more about power than lives of their people.  

China Daily is the communist party's propaganda rag.

Edited by BLA
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41 minutes ago, BLA said:

It has been known that China's banking system had extraordinary level of outstand credit/debt.  

The standard retort was the large cash reserves China accumulated buffered China against any financial problems.

Last time I checked (last year) China's credit/debt was 330% of GDP.  Hong Kong is 900% ! 

Since then China has slowed down.  China went thru a tariff war, with $250 billion still bearing U.S.  tariffs.  Then of course the coronavirus.  

How much of their cash reserves gone down ?

To battle the virus economic downturn the country has provided billions in easy credit.

How big is the credit bubble now ?

How big does it get ? 

My opinion . . .  Expect World Banking crisis with China and Hong Kong as the epicenter.

PS Europe banks never really properly re-capitalized from the 2008 financial crisis. Italy first to go down. 

 

I definitely think the EU will enter a recession this year, it looked likely before the 'virus' appeared.

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(edited)

They have made no friends with conservative Americans. They have disclosed their leftist governments for what they are. Now they have to worry about their own conservatives taking over. Merkel has been a disaster IMHO. Macron as well. Their popularity rates are the lowest I have ever seen. 

https://www.express.co.uk/news/world/1245544/Angela-Merkel-CDU-Germany-poll-Hamburg-election-news-latest

https://www.express.co.uk/news/world/1241143/emmanuel-macron-news-french-local-elections-lrem-mps-quit-french-president-poll-latest

https://www.rt.com/news/482663-germany-thuringia-ramelow-afd-support/

 

Edited by ronwagn
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