China Stock Exchange Goes Vertical:
As the Chinese stock market goes vertical, and its housing market stagnates near record lows, the government’s solution is the same medicine that hasn’t worked in Europe, Japan or the United States, more debt.
China’s First Developer Default:
Kaisa Group Holdings, a Chinese real estate developer has defaulted on two of its dollar-denominated bonds. The company failed to pay $52 million it owed last month, and wasn’t able to come up with the money by the end of the grace period that ended on Monday. Kaisa develops large residential properties and integrated commercial properties, according to Bloomberg.
China plans to continue urbanizing its population.
Coastal China Jam Packed:
The first-level administrative regions along China’s coast are densely populated and the government is encouraging more urbanization to pull people out of rural farming areas.
What We’re Reading:
Bernanke suggests Fed should study debt monetization. (Brookings)
Low Interest Rates: A Self-Defeating Strategy (Barron’s)
Druckenmiller schools Fed on Risk of easy money. (The Wall Street Journal)
Stock Market Losses With Low Interest Rates – A Wealth of Common Sense (A Wealth of Common Sense)
“This is *really* nuts. When’s the crash? | FT Alphaville” (Financial Times)