June 20th, 2014
04:38 PM ET

What I'm reading: China's brewing subprime crisis

By Fareed Zakaria

“In a world obsessing about too-big-to-fail banks, China's entire economy could be too big to save,” writes William Pesek for Bloomberg. “Well, bulls say, what about those $4 trillion of currency reserves? China would be hard-pressed to deploy those funds for bailout after bailout, each of which would dwarf the $85 billion lifeline the U.S. threw at American International Group Inc. The moment traders got wind of the fire sale in Beijing, markets would crash and U.S. yields would skyrocket. China would suffer an unimaginable paper loss – and a more tangible one for its export-reliant economy.”


“There is no reason to assume that Pakistan has turned on the Haqqanis. But the Army may prefer to push the network’s fighters, at least for a while, into eastern Afghanistan, where they also control territory. (They are, after all, Afghans,)” argues Steve Coll in the New Yorker. “The Haqqanis’ evacuation from their strongholds around Miran Shah would create space for Pakistan to attack the North Waziristan-rooted groups that it loathes most of all—the Uzbeks, Chechens, Uighurs (who spook Pakistan’s critical ally, China), and certain virulent and irreconcilable Pakistani Taliban. According to Pakistani intelligence estimates, there may be about two thousand Uzbek fighters and hundreds of Punjabi Taliban in North Waziristan today – those groups alone promise tough going.”

soundoff (12 Responses)
  1. chri§§y

    The beginnings of WWIII!

    June 20, 2014 at 6:34 pm |
  2. Maersk

    The writer should worry about the fact that he might have to rely on kwok zucking the Chinese to make a living instead.

    June 20, 2014 at 8:25 pm |
  3. Ferhat Balkan

    You mean all the greedy billionaires who sold out manufacturing jobs and invested in China will loose all their money?

    June 20, 2014 at 8:45 pm |
    • Leekim

      That would be great.....We lost our Company Connector Technology Inc. In Anahiem ,CA . Because all our customers went to China. The end

      June 25, 2014 at 4:22 pm |
  4. chri§§y

    Lol @ Ferhat! Now wouldnt that be a dirty rotten shame! Lol

    June 20, 2014 at 9:11 pm |
  5. simbahash

    But for the 4 trillion reserve denominated in US Dollars , China will see a massive Paper Gain in their local currency

    June 21, 2014 at 1:32 am |
  6. bobcat2u

    Three men wanted to cross a river. They had no idea how to cross it, so one man knelt down on his knees and prayed "Lord give me the power and strength the cross the river." suddenly the man became very strong and swam across the river. The next man thought: if it worked for him, it'll work for me. So he knelt down and prayed "Lord give the skills and the strength to cross the river." the man built a canoe and rowed himself across the river. The last man thought: if it worked for both of them, I know it'll work for me. So he also knelt down and prayed "Lord give me the wisdom and knowledge to cross the river." He turned into a woman and walked across the bridge.

    June 21, 2014 at 10:52 am |
  7. chri§§y

    Lololol thank you @ bobcat! I truly needed that particular joke today.... however did you know?!?

    June 21, 2014 at 12:22 pm |
    • bobcat2u

      Well, some people have said they think I'm psychic, others say I'm psychotic. I like to think of myself as psyCATic. But in any case, I'm pleased I was able to help.

      June 21, 2014 at 12:40 pm |
  8. chri§§y

    Well i dont care what other people think i think youre awesome lol!

    June 21, 2014 at 1:12 pm |
  9. paul

    The americans and europeans are takeing the totally wrong approach to the ukarainian problem, everyone knows the americans started the whole mess, just like veit nam, afghanistan, iraq, iran, egypt, tunisia, lybia, now ukarain, who will be next, Sucess is not measured in the amount of death and destruction the americans and europeans can make , It is measured by how quickly you can make peace with anyone you oppose, Why would the americans and europeans want to destroy the economy,s of all those country,s , they are going to end up slaughtering two thirds of the world population by a neucular war, can you imagine these same people want to go off into the universe to spread thier intelligence, you can bet they will take thier wars and military manuverse with them, another deadly war, all those experts commenting on this news storys think they have the knows , but to-morrow it does not work, nothing accomplished, We need to get this president out of the whitehouse,

    July 17, 2014 at 11:50 pm |
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