• Jim Costa

Jim’s Rant For The Day. The Lawless Virus Has Gone Global!

It’s true, the lawlessness has gone viral, now consuming China.

The bond market is different from the stock market. Bonds are backed up by company assets worth much more than the total bond issuance total. If the company defaults the bondholders call a meeting and seize the assets and pay off all the investors. That is what bonds are all about; they have a self-help clause built in.

But now comes China, the country in which Evergrande corporation is incorporated. China is blocking the bond holders from legally seizing their pledged assets from one of the world’s largest real estate holders. Thus China has also succumbed to lawlessness just like the US. All of this spells collapse.

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