Bitcoin Magazine Podcast
FedWatch 156 - Where's the Recession?
Aug 22, 2023
Podcast hosts discuss the misleading nature of Japan's GDP numbers and the impact of trade balance. They analyze the relationship between interest rates and the economy. The weakening Chinese yuan against the US dollar is explored, along with the potential collapse of the Chinese Communist Party and its implications. Casual conversation and event promotions are also included.
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Quick takeaways
- Zhangrong International Trust, a Chinese shadow bank, has missed payments on multiple products, indicating more severe troubles than initially thought.
- Private surveys reveal a deeper housing slump in China, with prices declining by an average of 15% and posing a challenge to China's consumer-led economy.
Deep dives
Chinese shadow bank misses payments revealing deeper troubles
Zhangrong International Trust, an embattled Chinese shadow bank, has missed payments on dozens of products and has no immediate plan to rectify the situation. The firm has experienced delays on at least 10 products since late July, with over 30 products now overdue. This indicates that the troubles at Zhangrong, which manages $138 billion, are more severe than initially thought. The firm's short-term liquidity has suddenly dried up, and it doesn't have an immediate plan to cover the missed payments. The Chinese authorities are studying the potential contagion risks, with the banking regulator tasked with examining the situation.
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