Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Gold Bug

LinkBack Thread Tools
Old 02-13-2014, 04:26 PM   #1
Fly on the wall
CoinExplorer's Avatar
Join Date: Sep 2013
Location: Tampa, FL
Posts: 44
Liked: 26 times
Chinese "Shadow Loan" Defaults: The New Global Financial Crisis?

Hey guys, put together some info from a few sources about the shadow banking "investment product" in China that has defaulted on the first five out of six total payouts to shareholders.

tl;dr "Trust" marketed through #2 bank in China made 1 billion yuan ($126 million) loan to failing coal company, sold shares of loan as "investment product". Coal company shits the bed, trust company gets stiffed, investors lose everything instead of making promised 9.8% return.

This is "Trust Equals Gold" that has melted down. PBOC may not bail this one out, after the heat they got for bailing out Trust Equals Gold. Financial regulators have been warning about loans to coal and heavy industry.

Personally, I think this is why physical gold demand in China hasn't dropped after Lunar New Year this time.
CoinExplorer is offline   Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
Contrary to popular perception, there is no "epidemic" of military-related suicides -- even though Penn STS 4 09-02-2013 12:43 PM
Wipe Out Humans - Bill Gates - Vaccines are "Best Way" to Depopulate Planet Jay STS 46 12-05-2012 11:52 AM
EU VAT-rate "harmonization" is going to raise silver costs for German investors swissaustrian Silver Bug 14 10-18-2012 04:09 PM
Financial "Crisis" in Greece PMBug STS 0 03-24-2012 11:23 AM
The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System SilverKing Fiat Ponzi 1 10-21-2011 11:22 PM

All times are GMT -5. The time now is 07:35 PM.

Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of copyright © 2011 - 2020 Measuring Up. All Rights Reserved.