Chinese companies have racked up $14.2 trillion in debt

[Guest FFHfan]

http://qz.com/221584/chinese-companies-have-racked-up-14-2-trillion-in-debt-more-than-any-other-country-on-the-planet/#/h/77370,2,3/

 

Scary stuff! I hope for the sake of global growth, that China get's the readjustment of its economy right.  :-\

[alertmeipp]

Maybe the Chinese will no more be able to run mines, steels, pulp plants at loss for too much.

 

 

[PatientCheetah]

its not the absolute number matter. Its the ability to pay. I wonder what the EBITDA coverage is. For example, S&P 500 debt level is currently at historical high but its coverage ratio is close to the historical low.

[rukawa]

The great depression was essentially the result of huge corporate and financial sector debts. Not consumer debts!! Prem Watsa's deflation bet was right...he just selected the wrong country :)

[theasiareport]

Reminds me of a old Ben Graham quote...

 

The risk of paying too high a price for good quality stocks – while a real one – is not the chief hazard confronting the average buyer of securities. Observation over many years has taught us that the chief losses to investors come from the purchase of low quality securities at times of favourable business conditions.