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Right now could it be 2008 all over again for China Fitch ratings is warning of an unprecedented credit bubble.
Growing in the Chinese banking system juggling -- is here with that story -- -- a lot of have to pay attention to this.
For its its exports alone I have grown dramatically from the United States and China so we want to pay attention to this.
That's right we really do and what's interesting about this -- it's kind of a self engineered credit crisis now basically.
Banks have become increasingly reliant on short term funding to me.
Long term obligations and they're now finding himself cut off from unfettered access to cheap money so -- sent shares.
Into their steepest decline in a single day nearly four years check this chart the Shanghai composite tumbled.
Five point 3% Monday on fears the People's Bank of China might not intervene to ease back credit -- And -- says the statement that sent the Chinese market totally spiraling PDF the People's Bank of China posting this on their website they say.
Due to many changing factors in the financial markets and also because of the -- point.
The requirements for commercial banks in liquidity management.
Have become higher now.
This confirms the Chinese Government is trying to come down very hard on the infamous shadow banking system and yeah American investor impact you can see.
The Dow was slightly down today on nervousness on China and aside from obviously -- that concerns.
But this plus the uncertainty over China's growth slowing down it's a tricky combination.
For companies heavily invested in China and it.
The bank does not limit hit limit those strain that those big companies he ill or the banks feel this good.
Trigger a significant unpredictable dangerous out -- the Chinese have been there before they happen.
And you know when I talk about exports I mean experts from the United States last year I think -- like 11%.
Growth into China where is just in 2002 is about 5%.
So -- about manufacturing -- could be really problematic but.
Didn't signals all along that we would get a correction in China Deng Gordon Chang as a guest on the show all.
I'm so predicting the collapse of China but I what I think is the most interesting thing about that is that if you look at -- after that loans that have been hit in.
Two -- the banks are to big companies -- -- state owned enterprises.
The return on that investment so to speak at GDP return has been -- dramatically over the past four years -- side.
When he 5% return I -- point 15 it's going down and down and down which means they're getting used to the money.
And it's not producing what it should be and popping up so much that what is -- legitimate behind that investment.
-- -- I know where we're gonna pay attention do because what happens in China is there an impact so many of our investments here's a thank you.
That's right and traveling -- up.
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