:quality(75))
In a letter to investors, Kyle Bass, one of a few hedge fund managers who predicted and cashed in on the 2008 mortgage crisis, says China's banking crisis could dwarf the Great Recession.
In the letter, Bass says China’s banking system looks similar to the US’ before the 2008 crash, with excessive leverage, regulatory arbitrage, and rampant risk-taking, Business Insider reports.
Titled “The $34 Trillion Experiment: China's Banking System and the World's Largest Macro Imbalance," the letter is the first he's sent out in two years. All in all, the crisis "could exceed 400% of the US banking losses incurred during the subprime crisis," he writes.
And after talking to Wall Street firms, consultants, and China experts, Bass says people are totally oblivious—they think China will be just fine, not realizing the size of the Chinese banking system. [BI]
)
)
)
)
)
)
)
)
)
){kind=logo}
)
)