Credit is Gold?

China has a tradition of naming things poetically that tend to get lost in the translation.  But a bond entitled Credit Is Gold is clear enough.  Credit is not gold.  The bond had to be bailed out, but now China is cracking down on specious bonds, a bit....

Far from being China’s Bear Stearns it might simply be a sign that China has arched its eyebrow at the solar industry (and other private, vulnerable industries that lack political clout) and decided to stroll away… with its arm still draped around the shoulder of privileged enterprise.

Bonds are an unnecessary financial instrument, and unwise in any event.  They are also the easiest to go bad, and China will have a problem with these.  But in all financial crises, the question is, "relative to what?'  If the crash in USA is experienced as worse than in China, as both will crash at the same time, then the question is who crashes hardest.

Impossible to predict on numbers alone.

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