Lee Duna@lemmy.nz to World News@lemmy.worldEnglish · 5 months agoChina is merging hundreds of small banks to fend off financial stresswww.businessinsider.comexternal-linkmessage-square4fedilinkarrow-up10arrow-down10
arrow-up10arrow-down1external-linkChina is merging hundreds of small banks to fend off financial stresswww.businessinsider.comLee Duna@lemmy.nz to World News@lemmy.worldEnglish · 5 months agomessage-square4fedilink
minus-squareThe Snark Urge@lemmy.worldlinkfedilinkEnglisharrow-up0·5 months agoThey’re trying to authoritarian their way out of a massive speculation bubble. I don’t think it will work, unless you can will away a black hole. Debt is a kind of gravity.
minus-squareGreatAlbatross@feddit.uklinkfedilinkEnglisharrow-up0·5 months agoIf they’re external creditors, it makes it a lot easier for them to go “nope, not paying that, what are you going to do?” when they’re one massive state-backed monolith.
minus-squaregravitas_deficiency@sh.itjust.workslinkfedilinkEnglisharrow-up0arrow-down1·5 months agoSovereign default is a thing. It’s a short term solution that can get a country out of immediate danger, but has very negative long term effects.
They’re trying to authoritarian their way out of a massive speculation bubble.
I don’t think it will work, unless you can will away a black hole. Debt is a kind of gravity.
If they’re external creditors, it makes it a lot easier for them to go “nope, not paying that, what are you going to do?” when they’re one massive state-backed monolith.
Sovereign default is a thing. It’s a short term solution that can get a country out of immediate danger, but has very negative long term effects.