The Later The Fed Raises The Interest Rates, The Worse The Collapse: Housing, Bond, Credit Bubbles Are Now All Unprecedented!

Monday, June 17, 2013
By Paul Martin
June 17th, 2013

Fitch Analyst: China’s Credit Bubble About to Implode, Unlike Anything In Modern History

China’s shadow banking system is out of control and under mounting stress as borrowers struggle to roll over short-term debts, Fitch Ratings has warned.

The agency said the scale of credit was so extreme that the country would find it very hard to grow its way out of the excesses as in past episodes, implying tougher times ahead.

“The credit-driven growth model is clearly falling apart. This could feed into a massive over-capacity problem, and potentially into a Japanese-style deflation,” said Charlene Chu, the agency’s senior director in Beijing.

The Rest…HERE

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