Why Evergrande has suddenly exploded into a potential global financial market crisis
Repost from 9-22-2021
“It is the non-COVID, non-inflation risk that has been lurking in the global backdrop for months: A looming default by Chinese property developer Evergrande Group. On Monday, this somewhat obscure, overseas risk suddenly shook up financial markets from Asia to Europe and the U.S.…”
USAGOLD note: We should know soon if Monday’s retreat in stocks was a warning shot across the bow on Evergrande or a groundless knee-jerk reaction. Much depends on the Chinese government’s reaction to the meltdown, i.e., whether or not it will allow Evergrande to truly become China’s Lehman Brothers moment.
Image attribution: Chorzinghuam 2, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons [cropped]