A Lehman Brothers moment for China; it’s already in a balance-sheet recession ⭐

The turmoil in China’s markets has sparked debate among some economists over the possibility of a “balance sheet recession. No, it wasn’t an increasingly hostile United States administration, trade sanctions, global inflation, semiconductor ban, a resurgence of Covid19, that has hit the Chinese economy the hardest in recent times. It was the relentless growth of China’s real estate market, which accounts for one-third of the country’s GDP, their ballooning debt threatening to turn into a bubble, a belated and a wrongly timed government action that has created the biggest ever economic crisis for this Communist country. The Asian Development Bank cut its growth forecast for China to 4% from earlier 5% – that’s shaving off US$200 billion from its economy. The turmoil in Chinese markets has sparked debate among some eco...