The New Conventional Wisdom: It’s Shadow Banks And Regional Governments That Will Take Down China
Below is a very breif video of Omnis’s James Rickards talking about Chinese real estate, a subject of endless fascination for those of us who a) just witnessed a horrific real estate crash and b) are trying to get a better grasp on things halfway around the earth.
What makes his comments notable is that they represent what we think is the new conventional wisom: Chinese banks are healthy enough (for now) what you have to fear is the regional governments (which love the bubble because they collect so much revenue form it) and the shadow, unregulated banking system. Sound familiar?
