Jason Burack: Evergrande Fallout – China’s Shadow Banking System Is The Real Problem?

Wall St. For Main St., Released on 9/24/21

Evergrande is just a microcosm of China’s real estate bubble and shadow banking problems. Chinese shadow banking refers to underground financial activity that takes place outside of traditional banking regulations and systems. China has one of the largest shadow banking industries with over 40% of the country’s outstanding loans tied up in shadow banking activities.

Another problem is trillions of bad debt from Local Government Financing Vehicle (LGFV) scams.

Buy Dinny McMahon’s book here: China’s Great Wall of Debt: Shadow Banks, Ghost Cities, Massive Loans, and the End of the Chinese Miracle https://www.amazon.com/Chinas-Great-W…

Wall St for Main St interview w/ Dinny McMahon from July 2019: Dinny McMahon: Local Governments in China Fueled China’s Great Wall of Debt? https://youtu.be/TE1vMcatF1E

Understanding China’s Shadow Banking System https://www.sisinternational.com/unde…

The Role of Debt and Shadow Banking in China’s Economy https://www.frbsf.org/banking/asia-pr…

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Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason’s work at his blog website at www.jasonburack.com.

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