Understanding China, One Blog at a Time

An American in China

Collapsing China, Bad Debt, Bailouts And Buffet

Posted by w_thames_the_d on August 14, 2012


Here is a post from the King of Swig, Brewskie. One has to wonder how long till the chicom thugs get their Gadaffi moment…..
From the BrewMan

More Scooby snacks:

Couple for Bidness Insider…

1st, Chinese companies are pulling out of US stock markets; I indicated earlier there’s been ONE Chinese IPO this year. Naturally, the Chinese lay blame on the low share price relative to their business… huh!?!? If the companies private it’s a sitting duck, or a scam company; if it’s an SOE – you know it’s a scam. Anyway, investors and Washington are tired of the reverse mergers, shell companies, and other accounting scams bilking investors. How’s Buffy’s baby BYD been doing – he scooped up 10% of the company!! LOL! (Well, given he lives in the same house he bought decades ago, and he eats at a ma & pa diner, I think he CAN afford it 😉 )

http://www.businessinsider.com/chinese-companies-us-stock-markets-2012-8#

Second, a company Zhongdan – in a nutshells it’s a mini-AIG – is on the verge of collapse. Now it guarantees 3 billion yuan – decent money but trivial, right? Not so fast: China’s FILLED with these mini-AIGs.

http://www.businessinsider.com/zhongdan-bankruptcy-raises-risk-of-chinese-financial-crisis-2012-8

A bit of a bad omen from 2011: Beijing infrastructure not suited for torrential rain:

Looks like a sign of things to come: stupid & impulsive banks want their money back are suing 20 bankrupt steel traders for defaulting on their loans.

http://in.reuters.com/article/2012/08/07/china-steel-loans-idINL4E8J63E420120807

And things ain’t getting better for those banks: Shanghai hits record low!!! Mhwahahahahaha!

http://www.reuters.com/article/2012/08/03/markets-ironore-idUSL4E8J30EO20120803

Remember when China’s central government bailed out the local locos last year? (Hell no, you can’t ask Americans to remember anything past five minutes.) It was in the tune of 2-3 trillion RMB; that tunes out to roughly $300 billion-$463 billion). Remember when the CCP said not long ago the economy was overheating, the brakes needed applying? Well, the banks are continuing the local guvs’ “heroin addiction.”

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1102&MainCatID=11&id=20120814000095

China’s story on the July PMI fell to 50.1. Anything below 50 signal contraction; 50.1 is the CCP’S word! In other words, there’s likely a contraction.

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1205&MainCatID=12&id=20120802000019

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