Fitch says China credit bubble unprecedented

Written by admin on June 18, 2013 – 10:37 pm

Ratings agency Fitch has warned China’s credit bubble is now unprecedented….

» Fitch says China credit bubble unprecedented in modern world history – The Telegraph, 16th June 2013.
» China’s credit bubble is unprecedented: Fitch – The Sydney Morning Herald, 18th June 2013.


Posted in China | 14 Comments »

14 Comments to “Fitch says China credit bubble unprecedented”

  1. LBS Says:

    Its going to be the mother of all bubbles and Australia is going to get hammered because some dumb redhead and her idiot (Swan) put all their eggs into one basket and blew it…….

  2. The Mig Fighters Says:

    Scary stuff I suppose,but what can we do about it?..Not much..bugger all…squat diddly…Me,I’m just gonna sit on the beach all day drunk in some tropical island while having a foot massage.

  3. LBS Says:

    http://www.macrobusiness.com.au/2013/06/video-chovanec-pettis-on-chinas-credit-crunch/#comments

    Great videos on China from MB

  4. Davo Says:

    China will do exactly what the US did when they started rolling debt monthly. They will give their own banks trillions at zero interest and pay it off the. The US did it. China will sweep away debt just like they did

  5. Fred Says:

    @LBS Redhead!!! Australia’s foreign debt exploded under the Howard years which created the real estate bubble. The little liar should be charge with treason together with Costello. I wonder how we will fare with the other comedian …Abbott

  6. AverageBloke Says:

    Wow the NZ housing bubble is even more insane than ours!

    http://www.macrobusiness.com.au/2013/06/auckland-anatomy-of-a-housing-bubble/

    Just add rabid asian property investors

  7. Pete Says:

    Great video AverageBloke. Some are desperate to get into the bubble before it’s too late.

    I remember some 24-25 years ago the japs were buying everything. At the time they even said, Japan would pass the USA as the largest economy in the world. That didn’t end very well. 23 years later their economy is still recovering from what was the world’s largest housing bubble.

    Amazing how people are blind and don’t see history repeat.

  8. Whotop Says:

    Pete. Have you stopped to think?

    As a result Japan owns everything it needs to keep itself full. It has the highest life expectancy and if you ever go there one day you’ll realise they have everything. That all with a population 1/3 that of the US and they have a comparatively higher GDP.

    They were thinking long term. They bough every asset they could get their hands on including our LPG reserves and their country is set for 100 years and they will stay at the top. China is currently doing the EXACT same thing. They have bought everything and printed money like crazy. They are set with natural resources for a generation. Our govt is full of short term thinkers trying to make a buck they can retire on instead of setting Australia up as a global power.

    China essentially locked the world into being dependant on them and now that we are they will dictate their own prices like Japan with tv’s cars and tech because they set themselves up for it. They produce all the worlds rare earths now, cars at half price, solar panels at 1/3 the cost. They know exactly what they are doing and are setting themselves up for 100 years where the rest of the world will pay what they dictate to them. Japan may have a crappy dollar but it has ZERO effect on the productive capacity of their economy. China knows this. $$ are relative and As long as the rest of the world thinks only 40 years ahead they are thinking 100 and we will forever be playing catch up

  9. LBS Says:

    Fred LMAO……as Donald Trump would say in Sept YOU ARE FIRED…..She is a joke along with that arrogant idiot Swan….. Bye bye Labor guess they should not have kissed the Greens a$$….. Later

  10. Matt Says:

    Sydney & Melbourne house prices and cost of living are way higher than New York and London, that says it all for me, something is really wrong.

    What happens when the Fed tries to slow Quantaive Easing, the stock market falls because it is an economy that needs to collapse but they keep artificially stimulating a bubble.

  11. Tim Says:

    I wonder if the China Credit Crunch will lead to more money flowing in for our housing now that the Chinese are starting to question if their banking system is sound:

    Withdrawals force banks to increase interbank borrowing
    “A massive withdrawal of deposits in early June has put a major squeeze on some banks, forcing them to increase their borrowings in the interbank market to meet their obligations. Depositors at China’s four State-owned banks withdrew up to 140 billion yuan ($22.70 billion) in the first nine days of June.”

    Tight liquidity raises bank risks, Fitch says

    “Persistent tight liquidity conditions in China’s financial sector could constrain the ability of some banks to meet upcoming obligations on maturing wealth-management products (WMPs), Fitch Ratings says. “We estimate that more than 1.5 trillion yuan ($244.5 billion) in WMPs – substitutes for time deposits – will mature in the last 10 days of June,” Charlene Chu, Senior Director of Financial Institutions at Fitch, said in a report on Friday.”

    I wonder if the Chinese will pull their WMPs out and put it in Australian (And NZ) Housing, which is considered a sure bet!

  12. Matt Says:

    And oh yes Dillard out on her fat arse in September to start rebuilding our economy, she has spent every sent before collapse

  13. Jamie Says:

    Comment 8 was right… http://mobile.bloomberg.com/news/2013-06-20/china-money-rate-jumps-to-record-as-pboc-holds-off-on-cash-boost.html

    They just printed a bunch of $$ and gave it to themselves at lower rates haha.

    Looks like those on the ‘china will crash’ have it wrong.

    PM Dilltard will introduce a ‘streamlined international investment plan’ next and suck that cash up to them to invest in Australia. Keep cooking those books gilltard just because people are dumb enough to pay $500k+5%yoy for $50k in building materials that lose 30% yoy is a great way to make an economy look like its generating wealth when it’s really just selling unproductive non exportable assets

  14. Matty Says:

    @ Jaime,

    “$500k + 5%yoy for $50k of materials that lose 30% yoy”

    Beautiful! The simplicity of that statement is amazing.

    I was listening to talk back radio last night. I heard a farmer call in. The regulations placed upon farming had made his venture a complete failure, with no hope of breaking even or paying out debts.

    The amount he received on selling the farm wasn’t even near the price for a home nearly an hour from Adelaide.

    It is outrageous what has occurred to this country over the last x number of years.

    It’s almost heartbreaking to watch friends purchase at these prices, knowing that they will certainly be caught out. Interest rates do not remain at 5% for ever. And the general public can not pay off over 100% of GDP in debt against property before rates sky rocket.

    $500K, paying 5% yoy for $50K in materials, that depreciate at 30%…..

    I can now see why they declare Telstra shares a gold mine: You could actually earn money from them. Housing has always been a lousy investment: It’s only bubbles and excessive debt levels that make it attractive….But it aint attractive enough to mel