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Monthly Archives: May 2016

Another Big Bank Shock Is Inevitable Unless…

8 years after the credit crisis, most big American banks and almost all big European banks are relapsing in spite of extraordinary central bank efforts to liquefy and engineer profits for them. However, as long as they pose colossal risks to the global economy and draw tens of trillions of dollars of central bank spending (which they mostly hoard on their balance sheets to survive and thrive) away from productive economic use, global growth will continue to stagnate, until it contracts dramatically and implodes the big banks all over again.

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China’s Debt Bomb & What Might Spark the Fuse

The ramp up in Chinese debt accumulation has been a leading concern of investors for years. The average total debt of emerging market economies is 175% of GDP, and skyrocketing corporate non-financial debt has launched China far beyond that number. The real question is: by how far? The answer is disconcerting, because nobody really knows. In today’s chart, we look at various estimates to the size of China’s debt bomb, its payload, and what might spark the fuse. Words: 354

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