" This could be China’s “Bear Stearns moment,” strategists at Bank of America Corp said...
Exaggerating much? "
Not really - While the default was on the most part of a small interest payment, the problem is there are billions and billions of defaults to come. Yesterday the banks found out that their high risk lending is not going to be covered by the government.
Its not this single default, its all the defaults to come which will put them at risk of bankruptcy.
Its like US sub prime where lenders didn't care who they were lending it to as someone else got the risk..
So same with how Chinese banks were running. When this unravels it will crash all the world stock markets just like the US did in 2007
Just think of the $15 Trillion in loans, only $3 Trillion of that was public borrowing. The rest was private, and think of those mega ghost cities (google if you not heard of these), and think of the 60 million homes built that no ones living in.. then think of who has the debts on these, and think of how everyone is losing their jobs and companies are going broke.
