Monday’s stock market slide could have been a response to any of the very many awful economic indicators we are currently facing.
A lot of the blamers were blaming China’s over-leveraged monster property development company The Evergrande Group. Evergrande just noted that perhaps they may not be able to pay back the $300+ billion they currently owe. That they borrowed from suckers – oops, I mean lenders – all over the world. So their looming default threatens the entire world’s economy.
China’s uber-cronyism made Evergrande into a global monster – #122 on Fortune’s August Global 500 hugest companies list. Because no one succeeds in China – unless the Communist government allows it to happen. Many of the Communists’ favored companies – have gotten really, REALLY huge.
Now it looks like China is realizing that having a few crony companies dominate the entire economy may not be the best way to run a railroad. Over the last several months, China has started to undo its cronyism for once-favored companies.
No company is “too big to fail” – when the government cuts off the cronyism. (more…)
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