"There is probably no company that is more representative of the investment bubble than Evergrande. Its the biggest pyramid scheme the world has yet seen."
Something historic will happen this week: as Beijing warned last week, China's largest and most indebted property developer, Evergrande, will default on some (or all) of its $313 billion in debt. And while some in the financial media are trying to talk down the significance of this event, make no mistake - this will be China's "Lehman moment", the only question is whether it will be controlled and contained, or will it be chaotic (i.e.m the "Nightmare Scenario" discussed on Thursday) and lead to worldwide contagion and a global deflationary shockwave. The answer will depend on how Beijing reacts and what it does in response.