China’s US$1 trillion consumer loan bubble is bursting as army of borrowers flinch under pandemic strain | Metals Mine

  • China’s US$1 trillion consumer loan bubble is bursting as army of borrowers flinch under pandemic strain

    From scmp.com

    China’s consumer loans are shrinking at an unprecedented pace after a decade of breakneck expansion, a blow to the government’s strategy of relying on spending as a growth engine amid the worst public health crisis in a generation. The net balance of consumer loans – made up of short-term and credit card loans from banks and online lenders – plunged by a quarter in the first two months of this year to 7.4 trillion yuan (US$1 trillion), according to data published by the People’s Bank of China. Some microlenders are staring at 20 cents on a dollar in bad loans. The nation’s much-vaunted army of consumers ... (full story)

Comment Options
RossEdwards
Apr 10, 2020 3:59am — Edited
Permalink
For Information

Most Traders/Investors are more concerned about the US consumer debt "Bubble" than that of China.

The Federal Reserve's latest consumer credit report shows Americans borrowing at record levels just as the COVID-19 crisis struck. Then 10% of workforce lost their jobs.
(Total US consumer debt — which includes credit cards, student loans, auto loans, and mortgages — now totals over 14 trillion dollars.)

Attached Image (click to enlarge)
Click to Enlarge Name: We Blew a $4.2 Trillion Debt Bubble Then 10 Million of Us Lost Our Jobs.png Size: 37 KB


Just a Thought#
Reply
RossEdwards
Apr 10, 2020 6:39am
Permalink
Quoting seaman2
{quote} you are saying US consumer debt = 14 T and china consumer debt is 1 T? seeing Chinese spend like there is no tomorrow before corona times, I have some doubts. Us citizens appear very stingy, in comparison. My guess is Chinese have some sort of swap with AUS so Chinese spend these AUD so in a way pay back for outsourced jobs...
Hi seaman2.. I post irregularly here, often to provide balance what may be skewed perspectives that arise from news and Op-Ed stories. Im not "Saying" anything. Im trying to bring reliably sourced facts positing broader perspectives to what can sometimes be narrow and sometimes partisan narratives.
In the case of the $14b referred to in post#4 above, I am referring there to US consumer credit in its totality including longer term borrowing like mortgages, student loans etc. rather than just short term CC type facilities.

Most folk on FF focus on largely and often wholly on technical trading systems which with good mentoring and application can be relatively easily learned and sometimes even mastered. And IMHO that's smart, because trading largely driven by fundamental and economic/geopolitical developments requires both deep pockets, and such a range of skills/experience to penetrate the inevitable fog of news spin, and urban myth, partisan bias and deliberately misleading /manipulated narratives... as we see here every day.
Just a Thought#
Reply
seaman2
Apr 10, 2020 5:15am
Permalink
Quoting RossEdwards
For Information Most Traders/Investors are more concerned about the US consumer debt "Bubble" than that of China. The Federal Reserve's latest consumer credit report shows Americans borrowing at record levels just as the COVID-19 crisis struck. Then 10% of workforce lost their jobs. (Total US consumer debt — which includes credit cards, student loans, auto loans, and mortgages — now totals over 14 trillion dollars.) {image} Just a Thought#
you are saying US consumer debt = 14 T and china consumer debt is 1 T?

seeing Chinese spend like there is no tomorrow before corona times, I have some doubts. Us citizens appear very stingy, in comparison.

My guess is Chinese have some sort of swap with AUS so Chinese spend these AUD so in a way pay back for outsourced jobs...
Reply
afevir
Apr 10, 2020 3:52am
Permalink
https://www.youtube.com/watch?v=JHYgM2RTl9M
Reply
heil
Apr 10, 2020 3:25am
Permalink
Chinese are poorer than most people think.
Reply
Derk
Apr 10, 2020 12:13am
Permalink
O boy
Reply
  • Story Stats