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Zero Hedge — “The Housing Market Is Almost Frozen” – An Even Bigger Problem Emerges For China“The Housing Market Is Almost Frozen” – An Even Bigger Problem Emerges For China

Summary:
China may have to nationalize the company. No one else has pockets that deep. This appears to be much bigger than GM, which the US government deemed it had to nationalize at the time of the GFC. Nationalizing means taking the entity on the government books. In the end the US government came out ahead on paper with GM, not that it mattered for a currency sovereign. However, China is not fully sovereign in its currency since it pegs to the USD. (Technically, China doesn't peg to the USD at a fixed rate but allows its currency to float within a range. So it is an overtly managed currency).Zero Hedge“The Housing Market Is Almost Frozen" - An Even Bigger Problem Emerges For China“The Housing Market Is Almost Frozen" - An Even Bigger Problem Emerges For ChinaTyler Durden

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China may have to nationalize the company. No one else has pockets that deep. This appears to be much bigger than GM, which the US government deemed it had to nationalize at the time of the GFC. 

Nationalizing means taking the entity on the government books. In the end the US government came out ahead on paper with GM, not that it mattered for a currency sovereign. However, China is not fully sovereign in its currency since it pegs to the USD. (Technically, China doesn't peg to the USD at a fixed rate but allows its currency to float within a range. So it is an overtly managed currency).

Zero Hedge
“The Housing Market Is Almost Frozen" - An Even Bigger Problem Emerges For China“The Housing Market Is Almost Frozen" - An Even Bigger Problem Emerges For China
Tyler Durden

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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