Evergrande Accelerates China’s Long March to Net-Zero Growth
The collapse and imminent bankruptcy of Chinese property company Evergrande is not and never was the country's Lehman's moment. This false depiction is a classic example of the financial markets' favourite trope and behavioural economic sin, referencing the straw man. The straw man provides displacement to distract from the real question: if Evergrande is not Lehman's, what is it? The answer is considerably longer than the thousand words afforded by this website, but in summary, I believe that the collapse adds momentum to China's inevitable long march towards net-zero growth. China's economic miracle will not end with a bang but with a whimper. There are superficial comparisons between Lehman and Evergrande; both were over-indebted companies involved in over-inflated property markets, both were companies brought low by authorities application of moral hazard. The best depiction of moral hazard "Dans ce pay-ci, il est bon de teur de temps un admiral pour en...