by Value Walk
When Jim Chanos called China Dubai times 1000 in 2010 many chuckled. Now that opinion has slowly become the consensus or at least a matter of serious debate. What is perhaps most interesting about Nomura’s September 14 report, “China: Solving the debt problem,” is the fact the solutions involve a China default. It is rare – if not a historic first – for a major bank to say the world’s second-largest economy is likely to default on its debt.
[…] Discussing government and corporate debt peril in public forums is typically muted if not outright censored. Although hedge funds have addressed the China default debt topic, for a major establishment-bound bank to actually discuss the grotesque details and predict a default in a major economy is something unusual.