Without going into too much detail, this is a big deal. Some analysts at the major rating agencies warn that if Evergrande defaults, it is nearly as bad as Lehman Brothers and Bear Sterns in how it could impact the global economy.
Uncertainty with Evergrande’s solvency will compound tension that already exists with rising food costs, inflation fears, and consumer sentiment at all-time lows, the last couple of weeks of September – possibly the remainder of 2021 – could be disastrous in all markets.
China, in general, is at a tipping point. Billionaires are being wiped out, media and cultural freedoms are being curtailed to levels not seen since Mao. This will have significant and broad implications on all global markets.