A debt increase three times steeper than our own horrific debt bubble that brought the entire world to its knees. That seems... ominous. What does Goldman Sachs have to say about all this?
“Such a scale of deterioration [in China’s leverage] certainly increases our concerns about China’s underlying credit problems and sustainability risk,” the Goldman analysts conclude. “The possibility that there is such a large amount of shadow lending going on in the system that is not captured in official statistics also points to [a] regulatory gap, and underscores the lack of visibility on where potential financial stress points may lie and how a possible contagion may play out.”This means more or less “there is more financial risk than China will admit” and also “it can’t last.”
(Gawker.com)
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