Nomura First Major Bank to Predict China Default; BIS Sounds Alarm

by Value Walk
Financial Sense

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.

Continue Reading at…