http://www.cnbc.com/2016/02/10/kyle...s-banks-subprime-losses-in-credit-crisis.html If this is true get ready for QE 4 QE 5 and QE 6 on top of Negative interest rates. No way out of this next crisis ....
china still has some dry powder to prop the banks for a bit, the bigger worry regarding banks is the so called PIGS. They were given a band aid back in 2008 and QE helped to cover up the problem and kick the can for a while but now here we are. QE no longer working in EU, negative rates is a desperate fail and the only fairly strong PIGS country in Italy has banks blowing up as we speak....no one even wants to talk about Greece, Portugal or Spain. And yes, I do believe it will spread to France pretty quickly now that ECB is out of bullets. This story regarding the southern countries of EU bankrupting the EU as a whole was pretty prevalent back in 2008/2009 but has been hushed up for a while...it really should be talked about more as it will be the biggest negative for the EU and not just for banking but also for allowing mass, unfettered immigration to over flow the northern EU countries to a breaking point both economically and politically. The china story may be, indeed, a well placed diversion from the real immediate problem * maybe one reason no recent talk about Spain/Portugal/Greek banks is that German banks had back stopped them to the hilt and now German banks are cracking down the middle. Germany hoped the Italian banks would make it on their own. China banks will crack, but it will take a bit longer
Chinese CB is state owned. I wonder if that makes a difference as to how this will play out? The state can enact any kind of a law they want.