This page has been archived and commenting is disabled.

Western Banks Find "In China, Nothing Is What It Appears To Be"

Tyler Durden's picture




 

When Chinese property developer Agile Property Holdings Ltd. said this month that its chairman was taken into custody by authorities, the disclosure was a shock to Western banks that lent the company money, according to China Spectator as the fog of ever-rising asset values suddenly evaporates into the reality of an opaque real estate credit market slap them in the face. The simple fact is "it is very difficult to get a handle on the financials of a Chinese company," as a local investigative consulting firm warns "in China, nothing is what it appears to be."

Foreign lenders in China have been stung by a string of suspected fraud cases and problem loans in the country as Beijing investigates company executives and seizes assets in a crackdown on corruption. Most notable recently , as China Spectator reports, was Agile Property...

Agile Property has a large debt payment due in December and has been scrambling to raise funds. It is in discussions with bankers at HSBC Holdings PLC and its unit Hang Seng Bank Ltd. , and Standard Chartered PLC for an extension of the US$475 million loan.

 

The company cancelled plans at the start of the month to raise 2.75 billion Hong Kong dollars (US$355 million) through a rights issue. A few days later, the company said it would try again, this time with the fundraising backed by the controlling family, meaning they would have to buy any shares not bought by investors.

 

When news came that the chairman was taken into custody, it was a shock to banks such as BNP Paribas , HSBC and Standard Chartered that had agreed to underwrite the original offering, and who have also lent the company money.

 

“It was a surprise to all the banks. We didn’t know,” said one executive at a Western bank with direct knowledge of the matter.

 

...

 

Half a dozen Western lenders are also locked in legal battles over exposures of around US$1 billion linked to a suspected fraud at Qingdao port.

 

...

 

In another widely reported case, a group of banks including Nomura International lent US$60 million to Chinese shoe company Ultrasonic AG just months before company funds went missing and its then-chief executive disappeared. That prompted the company, which is based in Cologne, Germany, but has many of its assets in China, to talk with creditors to avert insolvency proceedings.

 

The executive later emerged, telling Chinese media that he had lost his cellphone while in the Philippines and that he hadn’t absconded with company funds. But the company’s chief financial officer has since resigned, citing a lack of progress in finding the missing money.

The spate of suspected fraud cases and growing fears that loans won’t be repaid has raised questions about the effectiveness of scrutiny applied by banks to borrowers.

“In China, nothing is what it appears to be,” said Violet Ho, senior managing director, Greater China at Kroll, the investigative consulting firm.

Western banks have been lending to Chinese borrowers in huge volumes, often via their Hong Kong based subsidiaries.

Cross-border lending claims in China grew 47 per cent in the 12 months through the end of June, according to the Switzerland-based Bank for International Settlements. China is by far the biggest emerging-market borrower in the world, based on the BIS data.

 

Much of the lending into China has been driven by banks chasing higher returns as global interest rates remain low. Chinese companies can borrow more cheaply in Hong Kong, where credit is more freely available, than on the mainland.

Typically, according to bankers, the due diligence applied by Western banks to Chinese borrowers includes site visits, meetings with personnel and an analysis of the company’s books. But even with this degree of scrutiny, problem loans are emerging.

“It is very difficult to get a handle on the financials of a Chinese company,” said Kroll’s Ms. Ho. “If a bank wants to have a very black and white due diligence questionnaire, they will be hugely surprised and disappointed.”

To be sure, banks are aware of the risks faced when lending in China.

“When we speak to the banks that we own, they are alive to the risk and are managing their exposure across industries and cities in China,” said David Smith, head of corporate governance, Asia, at fund manager Aberdeen Asset Management.

 

Still, bad loans are starting to spike for Chinese lenders and there are signs of an uptick for foreign banks, too.

 

“We’ve seen a softening economy in China and when the sea goes out, the rocks appear,” said Keith Pogson, financial-services managing partner for the Asia-Pacific region at Ernst & Young.

Information on nonperforming loans made by foreign banks in China is hard to come by, although most analysts agree that lenders are facing rising risks as China grapples with a sharp downturn in the property market, which accounts for nearly one-fourth of the country’s economy.

“Credit risks of the real-estate sector can potentially generate large spillover effects onto other sectors, suggesting it is closely linked with other sectors through financial channels,” researchers at the Hong Kong Monetary Authority said in a recent paper.

 

Hong Kong-based banks such as Bank of East Asia have already warned of a spike in bad loans to Chinese clients, albeit from low levels.

 

“There is definitely a deterioration of credit in the Chinese market,” Mr. Pogson said.

*  *  *

Remember what Michael Pettis said...

If, instead, we have what everyone would hail as a soft landing, with growth remaining above 6-7% for another two years, it would just mean that credit was still growing too quickly. And once we reach debt capacity constraints, the so-called soft landing would be followed by a very brutal hard landing.

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 10/30/2014 - 08:22 | 5392920 AdvancingTime
AdvancingTime's picture

This should not be a surprise! The debate continues as to how stable china really is. A big reason dropping house prices in China is so important is that is where almost 75% of household wealth is stored. Here in America a much larger share of household wealth, approximately 71% is stored in financial instruments. The end of the housing bubble in China has the potential to become a huge deflationary "house of cards." 

The country is already suffering from massive overcapacity. Much of the recent growth in China after 2008 came from a massive 6.6 trillion dollar stimulus program that expanded credit and poured massive amounts of money into the system. This money encouraged expansion and construction with little regard as to real demand or need.

For years the people of China have had the habit of saving much of what they earn but the low interest rates paid at banks has not rewarded savers. With few investment options much of this money has drifted towards housing and driven housing prices sky high. The economic efficiency of credit is beginning to collapse in China and the unwinding of China’s giant credit spree could be very painful. More in the article below.

http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html

Thu, 10/30/2014 - 08:23 | 5392936 stinkhammer
stinkhammer's picture

In other news: I am proud not to be gay!   but the chinese can continue to make the gay CEO's iCrap in a humane way at Foxconn with their suicide fences and all.   yea!  I'm not gay   I'm not gay!

Thu, 10/30/2014 - 08:26 | 5392945 New England Patriot
New England Patriot's picture

What is truth?

Thu, 10/30/2014 - 08:28 | 5392959 OW My Balls
OW My Balls's picture

 What is truth?

 

Man who run in front of car become tired

Man who run behind car become exhausted

Thu, 10/30/2014 - 08:31 | 5392988 NoDebt
NoDebt's picture

Citi can't even handle themselves in Mexico.  What makes you think they know what they're doing in China?

Thu, 10/30/2014 - 08:40 | 5393030 negative rates
negative rates's picture

And everything that does appear to be, is not in China.

Thu, 10/30/2014 - 09:14 | 5393206 Dubaibanker
Dubaibanker's picture

Regardless of various opinions over the last decade, China keeps buying real assets with real 'dollars' or 'real' money around the world. They bought all AMC theatres, Motorola, JP Morgan HQ, Waldorf in NYC, parts of IBM, large chunks in Canada, African assets of over USD 1 trillion, lots of stuff in Ecuador and all over Latam, parts of Italy and parts of France (Peugeot), lots of Britain.....damn...they must be tired of owning all these assets......or have they just begun since 2010 circa? Russian acquisitions have just begun....

Falling apart in China...well..with all the new revenue streams they are creating, a few dozen local companies can easily go under without as much as a burrrp!

Thu, 10/30/2014 - 09:18 | 5393238 Publicus
Publicus's picture

The Chinese are the future.

Thu, 10/30/2014 - 09:52 | 5393413 Treason Season
Treason Season's picture

Rothschild's Sino puppets are the future.

Thu, 10/30/2014 - 10:16 | 5393507 COSMOS
COSMOS's picture

"it is very difficult to get a handle on the financials of an 'American' company,"  there fixed that for you...

Thu, 10/30/2014 - 10:57 | 5393650 manofthenorth
manofthenorth's picture

"In the World , nothing is as it appears to be "

Thu, 10/30/2014 - 13:12 | 5394425 mkkby
mkkby's picture

Yep.  That's why if you care about your money, you only lend it when you can take collateral and store/guard it yourself. 

Banks don't do that because they don't really care.  They are investing other people's money, and they can either print more or get govs to bail them out.  No lose games are fun to play.  The rest of us are just the suckers at the table.

Thu, 10/30/2014 - 11:01 | 5393662 Oracle 911
Oracle 911's picture

I think, it is a very subtle attack on the western banking system.

Thu, 10/30/2014 - 09:21 | 5393260 Its_the_economy...
Its_the_economy_stupid's picture

We've seen this movie before, but thanks.

Thu, 10/30/2014 - 09:46 | 5393377 williambanzai7
williambanzai7's picture

Run for cover when the business best seller lists are crammed with books on Chinese management techniques.

Thu, 10/30/2014 - 09:32 | 5393314 dizzyfingers
dizzyfingers's picture

"Regardless of various opinions over the last decade, China keeps buying real assets with real 'dollars' or 'real' money around the world."

Time will reveal winners and losers.

Thu, 10/30/2014 - 10:09 | 5393481 Ban KKiller
Ban KKiller's picture

They bought jean manufacturing companies in Nicaragua too. At least the Chinese paved the roads down there...

Thu, 10/30/2014 - 11:01 | 5393664 LFMayor
LFMayor's picture

Cathy Lee was a HARSH mistress!

Thu, 10/30/2014 - 08:43 | 5393044 Whoa Dammit
Whoa Dammit's picture

In America it is very difficult to get a handle on the financials of a company. In America, nothing is what it appears to be. Facebook value for example anyone?

Thu, 10/30/2014 - 13:03 | 5394377 mkkby
mkkby's picture

Exactly.  And who gives a shit if some banks lose money?  They just print more, that's all.  Bonuses might suffer for one quarter, then they do it all over again. 

Why bother with due dilligence at all when you have no way to lose?  Pass me another hooker and some blow please.

Thu, 10/30/2014 - 10:07 | 5393474 Ban KKiller
Ban KKiller's picture

Massive hubris? To make up for miniscule members? Ha-ha!

Thu, 10/30/2014 - 08:49 | 5393067 FredFlintstone
FredFlintstone's picture

Foolish man give wife grand piano. Wise man give wife upright organ.

Thu, 10/30/2014 - 08:59 | 5393125 LULZBank
LULZBank's picture

Man going backwards at airport turnstile, going to Bangkok.

Thu, 10/30/2014 - 11:01 | 5393671 LFMayor
LFMayor's picture

read it here, wife is still sick of hearing it:

Man with mosquito on testicle learn that violence not only answer.

Thu, 10/30/2014 - 09:27 | 5393303 Nathan American
Nathan American's picture

I took the effort to login so I could upvote you...

Thu, 10/30/2014 - 08:30 | 5392981 AdvancingTime
AdvancingTime's picture

Your choice to slip off topic takes us to the next step!

Its a "new world" out there. Recently I started to write an article  titled "Sexual Confusion On Steroids" inspired by coverage on the changing design of clothing on the PBS Newshour. They started by going into how Facebook had added options other than male and female to give people more options. I thought that was cool and wondered if they would have a box for me such as megamale, allmale, or ultramale. While I was pondering this they hit me with how in today's world today many people wanted to be outside the box, I found this both unsettling to downright humorous. If you can handle more on this subject below is the article it will leave you laughing or pissed off, I hope it is the former.

 http://brucewilds.blogspot.com/2014/10/transgender-pregnant-man.html

Thu, 10/30/2014 - 18:45 | 5393523 RaceToTheBottom
RaceToTheBottom's picture

Advancing Time,  I would question your data about most (71%) of American's wealth is held in financial instruments?

Maybe for the top 5% of the country, but most other people have no savings and maybe even no equity if they have been mining their house ATM....

Fri, 10/31/2014 - 13:04 | 5398839 malek
malek's picture

 in America a much larger share of household wealth, approximately 71% is stored in financial instruments

Ridiculous statement.
Please determine the number again, after taking away the top 0.1% or top 1% of households.

Thu, 10/30/2014 - 08:22 | 5392930 I woke up
I woke up's picture

In the land of China people hardly got nothing at all.  In China they never go to church.

Thu, 10/30/2014 - 08:25 | 5392946 OW My Balls
OW My Balls's picture

no possessions?      no religion too?      That's hard to imagine!

Thu, 10/30/2014 - 08:26 | 5392952 New England Patriot
New England Patriot's picture

Well it's easy if you try, Dick.

Thu, 10/30/2014 - 08:30 | 5392975 New England Patriot
New England Patriot's picture

P.S. - This was one of the more searing commentaries in Forrest Gump. It was essentially saying to John Lennon, and the legion of people who recite Imagine as if it were something new and wonderful, that he's essentially describing communism... and how is that working out?

Thu, 10/30/2014 - 08:39 | 5393031 OW My Balls
OW My Balls's picture

The greater majority of those hippity dippities who were moved to tears by all that garbage, nowadays are only moved to tears when their 401k takes a hit and their prescription drugs are running low.

Thu, 10/30/2014 - 23:39 | 5396855 Leraconteur
Leraconteur's picture

Just a brief thought experiment...all the hippies in 1967 would have been 15-30 years old. 14-22 median. Post-1946 boom, and all the smart older dudes who banged that young tail.

Born from1946 to 1953.

In 2014 they are between 61 and 68 years old.

Yeah, they are all on Social Security or close to it, and on 5 or moar meds. 

What is the over/under on how they will vote once they have retired and have all spare free time to surf the internet and bother their congressman?

Thu, 10/30/2014 - 10:06 | 5393468 Ban KKiller
Ban KKiller's picture

And a hearty "fuck you" as a juvenile response. Show me real communisim. Collectivism was working until Lenin crushed it...because it was working! 

Thu, 10/30/2014 - 11:04 | 5393682 LFMayor
LFMayor's picture

yeah, it just hasn't been done correct yet.  Dumbass. 

Thu, 10/30/2014 - 11:03 | 5393688 New England Patriot
New England Patriot's picture

Thanks for playing.

Thu, 10/30/2014 - 11:28 | 5393773 Leraconteur
Leraconteur's picture

...and farming cooperatives always failed because of administrative errors or someone sabatoged it.

Yet they failed in Russia...Ukraine...The Soviet Union...China....The USA...Cuba...Venezuela...they never work.

EVER. 

Thu, 10/30/2014 - 08:34 | 5392998 new game
new game's picture

plus one-john lennon

Thu, 10/30/2014 - 11:07 | 5393693 LFMayor
LFMayor's picture

plus Four, game and match:  Mark David Chapman

Thu, 10/30/2014 - 08:27 | 5392951 himaroid
himaroid's picture

I will finish this biscuit in honor of the poor chinee.

And this gay apple.

Thu, 10/30/2014 - 08:31 | 5392977 Beowulf55
Beowulf55's picture

Personally, I'm not much for the control system of organized religon, and it seems to me that not many people go to church in Aerica, so your point that China never go to church is......................... what?

 

Thu, 10/30/2014 - 08:32 | 5392996 I woke up
I woke up's picture

Tell me you're not serious

Thu, 10/30/2014 - 08:35 | 5393008 new game
new game's picture

opiate of control-FORCE!

Thu, 10/30/2014 - 09:02 | 5393133 GeezerGeek
GeezerGeek's picture

The idea that religion was the opiate of the masses never made much of an impact on me until I saw how so many low information voters chose to worship the Obamessiah back in 2008. Many of those same voters at this point seem to be suffering from the Stockholm Syndrome, or his popularity wouldn't be hovering around 40%. That same 40% seemed to worship Clinton, too, which says something about the mindset of those who vote Democratic. At least a sizeable portion of the other side had the decency to eventually realize that Bush 43 was not what they thought and his popularity dropped like a B52 that ran out of avgas.

Thu, 10/30/2014 - 09:26 | 5393282 Omen IV
Omen IV's picture

Obama's approval rating of 40% includes the black vote which is 18% of the population and 90% voted for him....because he is black - which is true today

take the blacks out of the polling and you have a 23% approval from everyone else - white,yellow and brown people !

Thu, 10/30/2014 - 10:35 | 5393577 Bemused Observer
Bemused Observer's picture

Religion still IS the opiate of the masses. Only these days we have many, many 'churches'. Churches of finance, of politics, of sexuality...that's right, it isn't just about God anymore.

What amazes me is how so many atheists claim to be free from religion, yet there they are, preaching on any number of other issues. They fail to see the truth...that they haven't 'left' their religion behind. They've merely changed churches.

A take-away I got from the Bible story of the golden calf is that when people feel the need to worship something, they don't always join a church. Sometimes they just make a God themselves, out of whatever they have lying about.

Thu, 10/30/2014 - 08:36 | 5393015 LULZBank
LULZBank's picture

With a name like Beowulf, what do you think?

Thu, 10/30/2014 - 08:53 | 5393089 GeezerGeek
GeezerGeek's picture

His point that China never goes to church is...incorrect. China actually has a thriving Christian church, it's just that most (if not all) of their churches are home churches. In America, going to church in many instances does not provide one with any information regarding the real Gospel, as too many churches have been co-opted by the world and concentrate more on social justice and all that other feel-good stuff that has nothing to do with Christianity. Those churches may have the form of Christianity without the substance. I suspect that those who attend churches in China are far more tuned in to the Gospel message than many American 'Christians'.

There is also the problem China has with large Islamic minorities in the western portions of the country.

Thu, 10/30/2014 - 08:23 | 5392934 Confundido
Confundido's picture

The Swiss gold referendum is the most stupid political move done by the gold bugs ever. It's going to be the shot in the foot, because the gold/central bkg cartel will so scare the shit out of voters with media propaganda that they will win and once they do, it will be crystal clear that gold as currency has no f..  chance in the foreseable future. It will sink all the way to $800/oz by december! Stupid Swiss f..cks!

Thu, 10/30/2014 - 10:02 | 5393458 Ban KKiller
Ban KKiller's picture

So, you stack?

Thu, 10/30/2014 - 08:25 | 5392937 himaroid
himaroid's picture

The opposite of America.

Everything here is what it seems to be.

Just disbelieved or ignored.

In either case the "western bankers" should read ZH.

 

Thu, 10/30/2014 - 08:26 | 5392948 Xibalba
Xibalba's picture

ha!  I know, right.  Everything on JPM's books is forthright?  Barclays has nothing it's hiding.  Shit, even our cash is backed by all the gold in Ft. Knox.  USA USA USA

Thu, 10/30/2014 - 08:23 | 5392939 LostandFound
LostandFound's picture

I dealt with the Chinese on a number of occasions, they never give bad news, even when the evidence is right in front of them.

Thu, 10/30/2014 - 08:30 | 5392974 NoDebt
NoDebt's picture

You know what the pilot of the Asiana Air flight said after he under-shot the runway, stripped off the landing gear and slid the plane on it's belly, off the runway a few hundred yards?

"Welcome to San Francisco.  We know you have your choice in airlines and we appreciate you choosing us.  We hope you enjoyed your flight.  Please come again."

 

Thu, 10/30/2014 - 11:25 | 5393760 Leraconteur
Leraconteur's picture

You are aware that Asiana is a KOREAN airline with KOREAN pilots that flew that aircraft into the ground, yes?
This thread and blog post is about CHINA. 

Thu, 10/30/2014 - 08:25 | 5392943 post turtle saver
post turtle saver's picture

this is my surprised face

Thu, 10/30/2014 - 08:25 | 5392947 yellowsub
yellowsub's picture

So much for due diligence or perhaps greed.

Thu, 10/30/2014 - 10:01 | 5393454 Ban KKiller
Ban KKiller's picture

Due dillegence is long dead. See Mortgage backed securities as an example...

Thu, 10/30/2014 - 08:26 | 5392950 AdvancingTime
AdvancingTime's picture

The UK banks may be very exposed as they have increased ties with China.

Thu, 10/30/2014 - 08:26 | 5392955 headhunt
headhunt's picture

Banksters being lied to. Funny that.

Thu, 10/30/2014 - 08:26 | 5392956 B2u
B2u's picture

no risk to the banks...which are going to look to the United States to bail them out from the losses.... 

Thu, 10/30/2014 - 08:29 | 5392967 Doubleguns
Doubleguns's picture

"... when the sea goes out, the rocks appear."

 

Soon to be replaced by "When the sea goes out the bodies appear"

Thu, 10/30/2014 - 08:33 | 5392995 NoDebt
NoDebt's picture

I thought when it came to bodies the main problem was "blobbing up".

Thu, 10/30/2014 - 09:01 | 5393129 Duude
Duude's picture

Not if they're shot full of holes.

Thu, 10/30/2014 - 08:29 | 5392973 Uncle Remus
Uncle Remus's picture

Stupid round-eye goy. Every. Fucking. Time.

Thu, 10/30/2014 - 08:31 | 5392983 diogeneslaertius
diogeneslaertius's picture

about as revelatory as snowden's powerpoint slides from 2001 intended for middle management to orient their minions

i smell a a pre-changeover pr pump for later plausible deniability when the global reset gets engineered and USD is imploded into SDR and the football is handed to the NWO's new blackbox markets in asia.

great write up though, ty for guidance.

Thu, 10/30/2014 - 11:23 | 5393756 ersatz007
ersatz007's picture

what's that about football?

Thu, 10/30/2014 - 08:32 | 5392984 new game
new game's picture

central planned central planning is not working? suprise suprise! loans from western banks, how about the fed, any loans to china on that 4 trillion ledger? japan, you involved? what a fucking ponzi joke. this pile of shit needs to be spread on a field of dreams now, before the people figure out they have been fucked, but good...

Thu, 10/30/2014 - 08:31 | 5392987 shovelhead
shovelhead's picture

Damn,

The article did't use 'inscrutable Orientals' once.

No worries, my Fuk King Yu Floating Pig Ltd. is doing fine.

I think...

Thu, 10/30/2014 - 08:33 | 5393002 LULZBank
LULZBank's picture

Does this mean China will not be overtaking US economy in twenty something?

Thu, 10/30/2014 - 08:41 | 5393037 new game
new game's picture

CURRENCY WARS GETTING HOT TODAY! WHICH CENTRALLY PLANNED DIRTY SHIRT WILL GET SOILED (moar)?

Thu, 10/30/2014 - 08:45 | 5393052 SethDealer
SethDealer's picture

 have to admit, I like chinese pussy

Thu, 10/30/2014 - 09:07 | 5393162 GeezerGeek
GeezerGeek's picture

The problem with that is - and I've been married to a China Doll since 1982 - that, like Chinese food, you soon find yourself hungry for more.

Thu, 10/30/2014 - 11:21 | 5393755 Leraconteur
Leraconteur's picture

How do you like her constant yelling at you to make more money?
Enjoy having her give you an allowance? 

Thu, 10/30/2014 - 08:50 | 5393054 withglee
withglee's picture

Information on nonperforming loans made by foreign banks in China is hard to come by, although most analysts agree that lenders are facing rising risks as China grapples with a sharp downturn in the property market, which accounts for nearly one-fourth of the country’s economy.

To the manager of any "properly managed Medium of Exchange (MOE)", DEFAULTs are the single most important input. Proper management means immediately collecting INTEREST equal to the DEFAULTs so that INFLATION can be guaranteed to be ZERO.

The relation is: INFLATION = DEFAULT - INTEREST

Since there are no timeseries reporting DEFAULTs for any period of history you choose (though timeseries for EMPLOYMENT, CPI, INFLATION, INTEREST, PPI, and myriad other economic measures abound), it is obvious that no MOE has ever been properly managed!

Why is this?

Sub-minimal proper management of any MOE means that perfect and transparent measurement of DEFAULTs is a given. It's trivial to monitor. Yet we read nonsense like "hard to come by" when it comes to this information. 

Why is that?

Thu, 10/30/2014 - 08:59 | 5393117 Duude
Duude's picture

Precisely, why I have no intention of investing in Chinese stocks, no matter the hype, no matter the stated fundamentals. You don't know what you have till you're at risk.

Thu, 10/30/2014 - 09:03 | 5393145 d edwards
d edwards's picture

And this is going to be the "powerhouse" that takes the lead in the global economy? Really?

Thu, 10/30/2014 - 09:59 | 5393445 Ban KKiller
Ban KKiller's picture

On the other hand our stocks are not hyped, companies are not hyped, books are not cooked. Total transparency on Wall Street. 

Sarc/off

Thu, 10/30/2014 - 09:10 | 5393192 williambanzai7
williambanzai7's picture

Well seeing as how all of the banks are crooks as well, they probably should have known.

Thu, 10/30/2014 - 09:10 | 5393193 williambanzai7
williambanzai7's picture

dupe/

Thu, 10/30/2014 - 09:26 | 5393286 dizzyfingers
dizzyfingers's picture

"In China, Nothing Is What It Appears To Be"

Just finding this out are ya?

:-)

 

Thu, 10/30/2014 - 10:10 | 5393486 withglee
withglee's picture

As if it's different in the USA ... or anywhere else for that matter.

Why did WTC7 fall down?

Thu, 10/30/2014 - 09:28 | 5393308 FallenOne
FallenOne's picture

Biggest shadow banking market on the planet more manipulation than the u.s imo and built on the backs of slaves! Going gold would be good for every1 in that land mass 

Thu, 10/30/2014 - 09:44 | 5393364 csmith
csmith's picture

BABA - the exception that proves the rule? 

BABA - the rule?

Thu, 10/30/2014 - 09:48 | 5393390 Seychelles
Seychelles's picture

System run by clooks by any other name is still clooked.  Doesn't matter if core is yuan or gold.

Thu, 10/30/2014 - 09:49 | 5393397 moneybots
moneybots's picture

"in China, nothing is what it appears to be."

 

Just like in the U.S.

Thu, 10/30/2014 - 09:57 | 5393438 Ban KKiller
Ban KKiller's picture

So true. GAAP, non-GAAP, one time charge, etc. 

I love the new phrase by the banks. "Programatic capital". Naturally no one defines this new term. 

Thu, 10/30/2014 - 09:50 | 5393399 GeorgeHayduke
GeorgeHayduke's picture

Things in 'Merca aren't as they appear either. Lies and bullshit rule the day as the monetized mortgage fiasco and other creative financial instruments have shown over the years. It seems lies and bullshit have been globalized too, right along with the globalization of so-called market economies.

Thu, 10/30/2014 - 10:10 | 5393487 Wild Theories
Wild Theories's picture

Gee, I'm shocked

you couldn't get any accurate financial handles on the company you were lending to, so you still lent to them anyway

gosh, I'm having a real hard time discerning what I should be feeling here

 

I think I'm supposed to be shedding a tear for the poor banks who lent to people they couldn't or didn't vet properly... but nope, the cynical asshole in me really can't feel sorry for you banks, at all

Thu, 10/30/2014 - 10:09 | 5393488 Ban KKiller
Ban KKiller's picture

Floating pigs tell no tails. Sorry. Off to feed the chickens. They never lie! 

Thu, 10/30/2014 - 10:26 | 5393546 frankly scarlet
frankly scarlet's picture

The difference is, in China they blew a huge real estate bubble but instead of trying to keep the damn thing inflated they are letting it collapse in a paritially controlled fashion while here in the west......

Thu, 10/30/2014 - 11:31 | 5393784 Consuelo
Consuelo's picture

"Remember what Michael Pettis said"...

I've been remembering what Michael Pettis, and others like him, have said since 2008 regarding the imminent demise and 'hard landing' of China.   Time to change it up a bit - like perhaps, 'crash landing', 'total implosion', you know - spice it up a bit...

Thu, 10/30/2014 - 13:02 | 5394371 asiafinancenews
Thu, 10/30/2014 - 13:24 | 5394502 alexcojones
alexcojones's picture
    In 1985, Groom moved back to Mobile, Alabama, where he began to work on the novel Forrest Gump. Forrest Gump was published in 1986; however, it did not make Groom a best-selling author until it was adapted into a film with the same name in 1994, a film starring Tom Hanks in the title role of Forrest Gump. The film propelled the novel to best-seller status, and the novel sold 1.7 million copies worldwide.

 

Winston Groom -
Thu, 10/30/2014 - 19:21 | 5395914 Youri Carma
Youri Carma's picture

fugezi, fugazi it's a whazy, it's a whoozy it's a ... http://youtu.be/UTHlXb0PXh4?t=1m44s

Thu, 10/30/2014 - 21:10 | 5396334 rgetty
rgetty's picture

Many of the sleazy Chinese business men and companies are buying up billions in real estate in the US. And the US gov allows it.

Do NOT follow this link or you will be banned from the site!