The Conservative Cave

Current Events => General Discussion => Topic started by: BlueStateSaint on January 20, 2014, 05:15:28 AM

Title: Mega Default in China Scheduled for January 31
Post by: BlueStateSaint on January 20, 2014, 05:15:28 AM

Just found this on Drudge.  The start of a worldwide financial collapse?

http://www.forbes.com/sites/gordonchang/2014/01/19/mega-default-in-china-scheduled-for-january-31/

Title: Re: Mega Default in China Scheduled for January 31
Post by: JohnnyReb on January 20, 2014, 10:47:05 AM

Quote from: BlueStateSaint on January 20, 2014, 05:15:28 AM

Just found this on Drudge.  The start of a worldwide financial collapse?

http://www.forbes.com/sites/gordonchang/2014/01/19/mega-default-in-china-scheduled-for-january-31/

So, then they call on the U.S. debt and the cookies start to crumble....and Mochelle's vacations end.

Title: Re: Mega Default in China Scheduled for January 31
Post by: DefiantSix on January 20, 2014, 10:48:51 AM

Quote from: JohnnyReb on January 20, 2014, 10:47:05 AM

So, then they call on the U.S. debt and the cookies start to crumble....and Mochelle's vacations end.

Oh no; they'll sell whole carrier battle groups before they cut into Moo-chelle Antoinette's vacay "budget"...  :banghead:

Title: Re: Mega Default in China Scheduled for January 31
Post by: DumbAss Tanker on January 20, 2014, 12:45:15 PM

I read the article, it's really about a half-billion USD fund crashing, which is closer to peanuts than mega in the scale of international finance...or about a quarter of a B2 in military terms.  The big concern in the Forbes article is more of a what-if about the Chinese either letting or not letting particular financial ventures fail on a wider scale.

Title: Re: Mega Default in China Scheduled for January 31
Post by: Dori on January 20, 2014, 12:49:46 PM

Quote from: DumbAss Tanker on January 20, 2014, 12:45:15 PM

I read the article, it's really about a half-billion USD fund crashing, which is closer to peanuts than mega in the scale of international finance...or about a quarter of a B2 in military terms.  The big concern in the Forbes article is more of a what-if about the Chinese either letting or not letting particular financial ventures fail on a wider scale.

You mean the Chinese don't do bail-outs?

Title: Re: Mega Default in China Scheduled for January 31
Post by: Maxiest on January 20, 2014, 02:31:15 PM

Quote from: Dori on January 20, 2014, 12:49:46 PM

You mean the Chinese don't do bail-outs?

No they just own 50% of whatever so no need.

Title: Re: Mega Default in China Scheduled for January 31
Post by: DumbAss Tanker on January 20, 2014, 04:08:27 PM

Quote from: Dori on January 20, 2014, 12:49:46 PM

You mean the Chinese don't do bail-outs?

The article indicates they kind of do, but in a way that pays off investors without necessarily rescuing the business itself or being especially visible to the investors either.  The concern is that the practice in the past may have masked problems in many other investment instruments, making them appear artificially good, while at the same time being concerned that letting this one fund fail might signal some sort of policy shift that could be bad news for lots of other Chinese funds in a sort of domino effect.