Chinese Banks Stop Lending Due To Liquidity Freeze Bond China Credit Line Shadow Banking Shenzhen Yuan If one thought the schizophrenic lies out of Europe between 2010 and 2013 were bad enough (the bulk of which it now appears were orchestrated by Mario Draghi), here comes China, a country which already has a "credibility" issue so to say, which has no choice but to lie as blatantly as possible in order to preserve some semblance of stability. The reason: as first forecast here months ago, and as has subsequently materialized, the credit/liquidity collapse in the country that lives and breathes on credit creation (the bulk of which is created in the shadow banking system) is rippling through the banking sector and causing unprecedented fallout for a financial industry that is already starved for every marginal yuan (and in a Keynesian "credit=growth" world, the economic crush is just waiting beyond the next corner). zerohedge/news/2013-06-26/chinese-banks-stop-lending-due-liquidity-freeze
Posted on: Wed, 26 Jun 2013 13:00:25 +0000
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