General Discussion
In reply to the discussion: Third prominent banker found dead in six days [View all]Squinch
(58,146 posts)the thread was locked because they were not breaking news. But as I said to Onlooker, here's what I've noticed:
HSBC recently limited the size of withdrawals that can be made from its accounts. They say it is because they want to "protect" the account holders. It seems a clear sign of liquidity problems, and HSBC was one of the first dominoes in the 2008 crisis.
At the same time, the Chinese central bank is telling its lenders to improve their liquidity, because of the recent reliance an unhealthy, huge amounts of debt to fuel growth. This is just another way of saying "bubble."
Yep. Something is coming. And it ain't going to be good.
All these things taken together are significant.
My guess: very bad Chinese financial instruments, of a quality like the worthless US housing bubble derivatives, have circulated and multiplied in the world market, and that bubble is about to burst. And if it is what is fueling Chinese growth, it is going to be big.