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Author: Doug Noland

Doug Noland’s Credit Bubble Bulletin: Ugly, Messy Evergrande

Evergrande owes over $300 billion – to banks and non-bank financial institutions, domestic and international bond holders, suppliers and apartment buyers. It has bank borrowings of $90 billion, including to Agricultural Bank of China, China Minsheng Banking Corp and China CITIC Bank Corp. (reports have 128 banks with exposure). Thousands of suppliers are on the hook for $100 billion.

These types of situations generally prove worse than even the more bearish analysts fear. Assume ugly and messy.

Doug Noland’s Credit Bubble Bulletin: The Long Hot Summer

Markets are said to hate Uncertainty. Yet stock prices rise to unprecedented heights in the face of myriad extraordinary uncertainties. The current course of experimental monetary inflation and fiscal stimulus creates epic Uncertainty. The course of China’s historic Bubble is similarly unsettled. The geopolitical backdrop points to alarming instability. Yet global climate change poses the greatest threat to all aspects of human life, starting with economic, social, political and geopolitical stability.

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