Fannie and Freddie bail-out China style - revisited.
Timely article from the ABC suggesting China's debt problem (note 280% to 300% of GDP) is an even greater problem than Tariffs, given China's lower reliance on net exports.
Read it here.
The article includes quotes from Dinny McMahon, author of "China's Great Wall of Debt", with perhaps the most poignant comment being that when countries have accumulated debt as quickly as China has, they have:
"almost invariably experienced a financial crisis". "That's like the United States before the sub-prime crisis, or Thailand before the Asian financial crisis."
I believe Beijing is wallpapering over events that appear to me to be pretty similar to US Treasury Secretary Hank Paulson's bail-out of Freddie Mae and Fannie Mac - on the eve of the GFC.
Check out this blog for a refresher.
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