Anytime you read an “Everything is Awesome!” article from the Wall Street shills in the corporate media, remember, these are the same asshats who not only failed to predict the 2008 financial crash, but who actively suppressed stories that would’ve warned the retail investor muppets that “something wicked this way comes.” Recall the scene from “The Big Short” where a WSJ “journalist” refuses to report on proof of a bursting housing bubble because he doesn’t want to lose access to the Wall Street suits he relies on as sources.
China’s property slump and suffering economy is leading some to wonder if China could be on the brink of its own Lehman-style crisis. While the troubles facing China’s economy are substantial, it’s unlikely to push China into the type of meltdown that sends the country’s financial system into a tailspin.
The debt that has fueled China’s property boom—and as a result its economic growth—has long been a source of concern for long-term investors. They aren’t alone: Chinese policy makers had been trying to tackle the debt in its economy—a reason they were much more restrained in providing Covid-related stimulus in 2020 and the reason for the property crackdown that sparked the current slump.