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Non-Tech : The Woodshed

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To: Wade who wrote (60399)9/23/2021 11:19:37 AM
From: Wade1 Recommendation

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ggersh

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The big difference between Evergrande vs Lehman moment is the debt to asset ratios. From what I understood is the the ratio of 1 to 1 for Evergrande, but 30 to 1 for Lehman and most of US banks at the same time in 2007. When Lehman fell it triggered highly leveraged international derivative markets of ~ $2 Quadrillion. It was a total meltdown of the worldwide central banks until the US congress gave them the power to print $ as needed. It is still going on and there is no end to fix the $2 quadrillion hole.

It appears China is trying to make whole or at least partially for their domestic bond holders of Evergrande. We shall see if there is more mines. I think it is not going to be even close to what we saw back in 2007-9. Well...what do I know.
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