[ April 13, 2026 ]
It begins — and on top of this, the Democrats mean to saddle us with another five trillion in debt. Not sustainable.
The Chinese are …….. are firing on all cylinders while the Democrats lick their boots. They know exactly what they are doing.
U.S. stock benchmarks were on track to post the worst daily drop in more than two months, with the skid being blamed on the potential collapse of Evergrande. The Chinese property giant is threatening to default on $300 billion in debt that could ripple through global markets.
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AAN: The Dow Jones Industrial Average DJIA, -1.84%, the S&P 500 index SPX, -2.00% and the Nasdaq Composite COMP, -2.48% indexes were all facing sharp declines at Monday’s open.
However, the sharp downturn by the highly leveraged real-estate sector, which the Financial Times notes makes up more than 28% of China’s economy, isn’t the only problem for markets on Monday.
The Dow Jones plummeted more than 600 points on Monday morning over fears that a massive Chinese property bubble might create a new ‘Lehman Brothers’ moment.
As Fox Business reports:
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The Dow Jones Industrial Average plunged 586 points, or 1.7%, while the S&P 500 index and the Nasdaq Composite index declined 1.69% and 1.99%, respectively.
Chinese real estate developer Evergrande’s shares tumbled more than 15% Monday amid worries the company will not be able to make a debt payment later this week.
Some market watchers have called Evergrande China’s “Lehman Brothers moment,” drawing comparisons to the collapse of the U.S. investment bank, which began the 2008 financial crisis.
Hong Kong’s Hang Seng index tanked 3.3% while China’s Shanghai Composite was closed for holiday. The selling spilled over into Europe, where Germany’s DAX 30 fell 2.%, France’s CAC 40 lost 2.39% and Britain’s FTSE 100 dropped 1.61%.
The Dow Jones plummeted more than 600 points on Monday morning over fears that a massive Chinese property bubble might create a new ‘Lehman Brothers’ moment.
As Fox Business reports:
The Dow Jones Industrial Average plunged 586 points, or 1.7%, while the S&P 500 index and the Nasdaq Composite index declined 1.69% and 1.99%, respectively.
ADVERTISEMENTChinese real estate developer Evergrande’s shares tumbled more than 15% Monday amid worries the company will not be able to make a debt payment later this week.
Some market watchers have called Evergrande China’s “Lehman Brothers moment,” drawing comparisons to the collapse of the U.S. investment bank, which began the 2008 financial crisis.
Hong Kong’s Hang Seng index tanked 3.3% while China’s Shanghai Composite was closed for holiday. The selling spilled over into Europe, where Germany’s DAX 30 fell 2.%, France’s CAC 40 lost 2.39% and Britain’s FTSE 100 dropped 1.61%.
If the property giant does default on its massive debt there is a risk of a potential worldwide financial contagion spreading, as Marketwatch explains:
But in the event of liquidation, there would likely be a “high degree of contagion,” they warned. The spillovers would occur, they said, through three channels:
Investors getting extremely low recovery values, something which would lead to a material loss of investor confidence in the broader property sector and Asia high-yield offshore market and create spillover into the broader Chinese financial assets.
A domino effect of credit events, given that both banks and nonbanks with large exposures to Evergrande could potentially go under or be forced into restructuring. This would again create spill over into other Chinese financial assets and drive underperformance of financials in particular across both [developed market] and [emerging market] credit/equity markets, led by those names with direct exposure either to Evergrande itself, its subsidiaries or its creditors.
If the property giant does default on its massive debt there is a risk of a potential worldwide financial contagion spreading, as Marketwatch explains:
But in the event of liquidation, there would likely be a “high degree of contagion,” they warned. The spillovers would occur, they said, through three channels:
-
Investors getting extremely low recovery values, something which would lead to a material loss of investor confidence in the broader property sector and Asia high-yield offshore market and create spillover into the broader Chinese financial assets.
-
A domino effect of credit events, given that both banks and nonbanks with large exposures to Evergrande could potentially go under or be forced into restructuring. This would again create spill over into other Chinese financial assets and drive underperformance of financials in particular across both [developed market] and [emerging market] credit/equity markets, led by those names with direct exposure either to Evergrande itself, its subsidiaries or its creditors.
There’s a major Chinese property company that has fully collapsed, but China has so far refused to bail the company out, which has triggered the collapse of a handful of other major development companies in China which has tanked the banks in Hong Kong.
Could get interesting.— Ethan Embry (@EmbryEthan) September 20, 2021
Stock market news live updates: Wall St. sinks amid China’s Evergrande contagion fears, US debt politics
By: Emily McCormick, Yahoo, September 20, 2021:
Stocks plunged on Monday, with major indices tumbling by over 1% at the opening bell, as investors nervously eyed the potential ripple effects of the default of a major Chinese real estate company, as well as ongoing debates over the debt limit in Washington.
After defying gravity for most of the summer, September is shaping up to be a tough month for markets, with major benchmarks in retreat for three consecutive weeks. At Wall Street’s opening bell, the Dow sank by more than 500 points, while the S&P 500 also dropped by nearly 70 points, adding to losses from last week. The CBOE Volatility Index, or Vix (^VIX), jumped by more than 15% to its highest since August, as a confluence of risks roiled markets.
Shares of China Evergrande Group (3333.HK) plunged by more than 10% on the Hong Kong Stock Exchange as fears mounted that the Chinese real estate juggernaut would collapse under a major debt burden, impacting shareholders, bondholders and potentially triggering turmoil elsewhere across global markets. The specter of a broader crackdown by the Chinese government on Hong Kong’s real estate sector further added to concerns.
“While the Evergrande situation is front and center, the reality is, stock market valuations are overstretched and the market has enjoyed too long of a break from volatility and Monday’s stock market declines are not surprising,” said David Bahnsen, chief investment officer at wealth management firm The Bahnsen Group, with over $3 billion in assets under management.
Meanwhile, heated debates in Washington over increasing the government’s borrowing limit built on the risk-off tone in markets. U.S. Treasury Secretary Janet Yellen called for Congress to raise the U.S. debt ceiling again in a Wall Street Journal op-ed, and suggested that to do otherwise would risk leaving the government to default on payments and generate “widespread economic catastrophe.”
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