The big short

“The defence wins. China is not pre-crisis America. Those who hear history rhyme too well are usually not listening closely”

George Soros w

George Soros

The Financial Times Lex column gives its verdict as to whether George Soros is right to predict a debt crisis in China similar to the 2008 American subprime disaster. “A heretical thought: China’s debt binge does not have to end in disaster,” the column pointed out last Friday. However, on Monday the FT ran another article taking a contrary line: it calculated China’s debt to GDP ratio rose to 237% in the first quarter “raising the risk of financial crisis or a prolonged slowdown in growth”.

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