In 2021 the cracks in China’s real estate sector were exposed when its biggest developer – Evergrande Group – started having trouble making interest payments on its debt. The company’s bonds were never in amazing shape. Junk debt, to be sure. They traded around 83 cents on the dollar in May of 2021, but by […]
Why China’s Crisis is like the panic of 1907 Read More »
Summary: The Federal Open Market Committee (FOMC) is responsible for setting the key overnight rates in the economy. You and I don’t borrow or lend at these rates, the banks do. Its main policy interest rate, Fed Funds, is the rate banks pay to borrow from one another. In the 16 months up to July
Meltdown in China caused the Fed to hit the Brakes Read More »
A high private debt load, deep webs of counterparties in real estate loans, and collapsing real estate values make conditions ripe for a debt deflation.
Korea is Growing Closer to a Financial Crisis Read More »
