The Chinese Banking Crisis Explained

== ASK ME A QUESTION ==

== SOURCES ==
Tue 24 May 2016

Finance in China: Big but brittle
May 7th 2016

China’s financial system: The coming debt bust
May 7th 2016

Free exchange: Red ink rising
Mar 5th 2016

Xi Boosts Party in China’s $18 Trillion State Company Sector
July 8, 2016

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Happy Studies!
-Phillip

[MrCosmos]

“Give the people bread and circuses and they will never revolt”
---- Juvenal, Roman poet AD 60 to 130

[ricknelson]

Ya, let's hope China can keep things alive... how is that a good thing. There needs to be a major breakup to get rid of the corruption systemic within the Chinese system. Trump is doing this now. Putting the required pressure on the Chinese to make these changes.

[deeps]

Wow this is now 2019 video was in 2016.
I think chickens might be coming home to Rooster!
Experts saying 2020 is going to be worse.

[tenminutetokyo]

Cant prop up a fake system with debt forever.

[jvclfsm]

"OH WHAT TANGLED WEBS WE WEAVE WHEN FIRST WE PRACTICE TO DECEIVE!" Truer words have never been spoken!!

[conanthedestroyer]

Hitler started building roads steel mills all part of the plan to be able to move troops fast and he built up his military Air Force Navy sound familiar

[lylecosmopolite]

I am convinced that many Chinese bank loans are not truly loans as you and I understand them. They are equity participations with downside risk but no upside potential. Paying loans back is subject to an unspokenn rule: "pay what you can, when you can, as long as we have a seat on your board of directors and can see your books." There are no firm Chinese accounting rules requiring that state banks deem a loan nonperforming. State owned banks are not answerable to shareholders. The Bank of China stands behind any state owned bank hit by a run, by giving a state owned bank all the currency it needs to satisfy panicked depositors. And what will the Chinese do with their panic cash? Deposit it eventually, in another state owned bank, that's what!
Mr Wong seems to believe that Chinese nonfinancial decision makers have not invested in the best capital projects on offer. I am agnostic about that claim. I prefer to say that over 2009-16, China invested frantically even in situations when no project contemplated had a positive net present value. Spending for equipment and structures adds to GDP even if the investment cannot ever make a profit. I suspect that Chinese accounting practices can be manipulated to disguise the fact that a firm, public or private, is running at a loss.
I agree that a massive failure of corporate governance lies at the heart of the looming Chinese crash.

[Soliloquy]

Do you think this may help open the door to an increase in trade between Australia the UK post-Brexit?

[miguelarzak]

Except that it is NOT happening.
How exactly do you know what part of the 15 trillon assets of combined deposits on Chinese state banks are obligations and not actual money?

[allancrow]

Excellent and easy to understand. Thanks for the rundown Canada!

[toddmarshall]

It's so scary to watch these people who claim to be experts and who obviously don't even know what money is.

[agri-lifeorganicfarm]

Very good video. I especially like that you ask for a like at the end of the video and not like so many others who ask for a like and subscribe at the beginning when the audience hasn't even heard the video yet, Good job; great information.

[arharshalpatwardhan]

You are doing great review of 5he Chinese ccp economy. I thought it would be more understandable if you pause a bit so that in between thinking will happen for the viewers

[LosizakII]

This is one of the *best* explanations I've come across on this issue. Thank you!

[greenp]

So, how is it that China’s economy hasn’t yet collapsed? Could do with a follow-up video to this one which is getting ancient already !

[vanessali]

You are right all along. Can't believe this is 4years old.

[Zlinky]

(your economics videos) How do you think it will all end? Do you think that the world will cease to trade with China? that China's currency will eventually become valueless as the world loses confidence in it?

[indradevabhakt]

Green Goblin says to China and it's on coming banking financial crisis, ..." Misery, Misery, Misery, that's what you've chosen, ..."

[ronaldduhon]

AND FOREIGN COMPANIES ARE RUNNING OUT OF CHINA , AT RECORD SPEED!!

[robertdoell]

Excellent analysis. Easy to undersatnd and a better review of Chinese conditions internally.