China - The Mother of All Black Swans

Started by CrackSmokeRepublican, February 13, 2010, 02:56:20 PM

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CrackSmokeRepublican

February 13, 2010, 02:56:20 PM

China - The Mother of All Black Swans - By Vitaliy Katsenelson

http://www.scribd.com/doc/26781802/Chin ... atsenelson
After the Revolution of 1905, the Czar had prudently prepared for further outbreaks by transferring some $400 million in cash to the New York banks, Chase, National City, Guaranty Trust, J.P.Morgan Co., and Hanover Trust. In 1914, these same banks bought the controlling number of shares in the newly organized Federal Reserve Bank of New York, paying for the stock with the Czar\'s sequestered funds. In November 1917,  Red Guards drove a truck to the Imperial Bank and removed the Romanoff gold and jewels. The gold was later shipped directly to Kuhn, Loeb Co. in New York.-- Curse of Canaan

CrackSmokeRepublican

#1
February 17, 2010, 10:19:44 PM
2010-02-17
China Defaulting Loans Soar
Just to follow up on yesterday's post about China's likely crash, here are some quotes from an interesting Bloomberg report (I had saved it a while ago, but took several days to write my previous post so the report is already more than 10 days old...):

    Feb. 5 (Bloomberg) -- Non-performing loans in China have risen into the "trillions of renminbi" because of poor lending practices, an insolvency lawyer said.

    "We work really closely with SASAC, the state-owned enterprise regulator in China, and there are literally trillions and trillions of renminbi of, frankly, defaulting loans already in China that no one is doing anything about," Neil McDonald, a Hong Kong-based business restructuring and insolvency partner with Lovells LLP, said at an Asia-Pacific Loan Market Association conference yesterday. "At some point there's going to be a reckoning for that." [...]

    Chinese banks issued a record 9.6 trillion yuan ($1.4 trillion) of new loans last year as part of a 4 trillion yuan stimulus package aimed at bolstering growth through the global financial crisis.

    "At some point in China, maybe it will be two, three or five years, but at some point there will be in the property markets and in the markets generally, there will be rationalization of very poor lending practices," McDonald said during the panel discussion on restructuring and refinancing at the Global Loan Market Summit in Hong Kong.

    Over the past decade China's government has spent more than $650 billion bailing out state banks after years of government- directed lending caused bad loans to balloon. The average non- performing loan ratio at Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. dropped to about 1.6 percent as of Sept. 30 from more than 20 percent before each bank was bailed out, according to earnings reports.

Posted by pej at 09:40

http://realitylenses.blogspot.com/2010/ ... -soar.html
After the Revolution of 1905, the Czar had prudently prepared for further outbreaks by transferring some $400 million in cash to the New York banks, Chase, National City, Guaranty Trust, J.P.Morgan Co., and Hanover Trust. In 1914, these same banks bought the controlling number of shares in the newly organized Federal Reserve Bank of New York, paying for the stock with the Czar\'s sequestered funds. In November 1917,  Red Guards drove a truck to the Imperial Bank and removed the Romanoff gold and jewels. The gold was later shipped directly to Kuhn, Loeb Co. in New York.-- Curse of Canaan
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