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The Numbers Behind A Possible China ‘Lehman Moment’
Whenever there's trouble in China, the media conjures Lehman.
"China Needs A Lehman Moment" or the tantalizing interrogative form, "Is This China's Lehman Moment?", are guaranteed to generate web traffic. And web traffic generates revenue. So Lehman it is.
On Wednesday alone, there were at least two Lehman/China headlines. "China Needs Its Own Lehman Moment -- Now," Shuli Ren declared, for Bloomberg Opinion. "As China’s property crisis plagues its economy and financial system, is a ‘Lehman
the reason it is unlikely we or china will have a Lehman moment is because everyone saw what happens when there is a Lehman moment. What the response to the GFC and even the march regional crisis is that if the Government or central banks can buy time for the banks the problems will eventually unwind themselves . it can take a while, but property values tend to recover. or other arrangement can be worked out. what shocks the system are forced liquidations.