Is Evergrande a symptom of deeper malaise?
“The market view on the coming Evergrande ‘event’ is mixed. Some analysts are dismissing it as an internal “China event”, others reckon there may be some systemic risk but one Government can easily address. There is some speculation about “lessons” to be learnt… There are even China supporters who reckon its proof of robust China capitalism – the right to fail is a positive! I’ve got a darker perspective.”
USAGOLD note: Blain goes on to outline some of his deepest concerns on Evergrande at one point saying China’s “illusion of a strong economy is unraveling.” Meanwhile, Wall Street is not at all concerned about a global contagion effect from the Evergrande meltdown, according to this Bloomberg report.