When the Bond Market Gets Reincarnated, What Will It Come Back As?

Investors soured on stocks in Europe and the U.S. as the week began. The proximate cause of the sell-off was concern over Evergrande.      September 20, 2021 advertisement   A private message for every American interested in the future

Today's Top Stories From the Breitbart News Desk Investors soured on stocks in Europe and the U.S. as the week began. The proximate cause of the sell-off was concern over Evergrande. In truth, the company has been a source of concern for many China skeptics for years as it borrowed oceans of funds to build itself up into a goliath with $355 billion or so of assets. But for years it was assumed that the Chinese regime would not let Evergrande fail, so the risks of its debt-heavy structure were ignored by all but a few short-sellers. No more. Investors over the weekend went from worrying about whether Evergrande would default, to worrying about what other developers might be next, to worrying about knock-on effects on creditors who might be over-exposed to Evergrande, to speculating that it might be too late to avoid a systemic crisis. Part of the Evergrande problem is the broader weakness of the Chinese recovery. That weakness, which recently saw Bank of America drop its growth expectation for next year from 6.3 percent to 5.3 percent, stems from two root causes. The first is simply a tight fiscal and monetary policy, as the Chinese government continues to try to squeeze speculation in real estate and reduce what it viewed as excessive risk-taking by lenders. The second is, in many ways, more profound: Xi Jinping has made it clear that he is bent on fundamentally restructuring the Chinese economy. Instead of moving closer to something like Western-style capitalism, Xi wants China to return to something like Mao's socialist vision. Mao saw capitalism as a phase on the road to socialism, and Xi has decided it is time to move on down that road. What this means for a giant company built on real estate speculation and debt as it teeters on the edge of default is far from clear. Surely, Xi wants its Chinese creditors, vendors, and some 200,000 workers protected. But what about outside creditors from the West? James Carville famously said that if he was reincarnated, he would want to come back as the bond market because the bond market can intimidate anyone. In Xi, perhaps the bond market has met its match. – Alex Marlow & John Carney Breitbart News Network

TOP STORY

Exclusive—Rep. Bob Good: Biden Wants to Give the IRS Automatic Access to Your Bank Account

It seems you cannot open a newspaper today without finding another new mandate or regulation being proposed by the Biden administration, all intended to take more power from the American people and give it to Washington. President Biden and Democrats in Congress now want to force your bank or credit union to report any and every transaction of $600 or more to the IRS. This action is a huge leap from the current requirement to report transactions of $10,000 or more and is textbook government overreach. One purpose of the initiative is to capture more money from Americans to pay for the record $3.5 trillion Democrat socialist spending spree. Under the guise of holding the wealthy accountable for their fair share of taxes, the Biden IRS will actually be targeting middle America. The proposed regulation would apply to all business and personal accounts, affecting the lives of all American workers and small employers across the country. Biden's IRS power grab is just the latest demonstration of the contempt his administration and Democrats in Congress have for business owners and job creators. [Click here for more]

IN OTHER STORIES...

Dow Plummets 614 Points as Fear of China Contagion Takes Hold

U.S. stocks fell sharply on Monday as investors worried about contagion from China. The Dow Jones Industrial Average fell by 614 points, around 1.8 percent. The S&P 500 fell 1.7 percent. The Nasdaq Composite dropped by 2.2 percent. The small-cap Russell 2000 declined... [Click here for more]

Homebuilder Sentiment Rises for First Time in Five Months

Builders of single-family homes in the U.S. are feeling a bit better about the industry. A gauge of homebuilder sentiment ticked up in September, the first month-to-month gain for the index since April, to a score of 76, the National Association of... [Click here for more]

'He's Still Sleeping:' Elon Musk Snipes at President Biden After SpaceX Snub

SpaceX and Tesla CEO Elon Musk took shots at President Joe Biden on Sunday for failing to praise SpaceX for its all-civilian mission to orbit the Earth. When fans pointed out on Twitter that Biden had failed to acknowledge the spaceflight, Musk quipped: "He's still sleeping." CNBC reports that SpaceX and Tesla CEO Elon Musk was unhappy with President Joe Biden's failure to acknowledge the recent SpaceX civilian mission to... [Click here for more]

FOLLOW

Did you receive this email from a friend? Sign up to receive Breitbart Business Digest.   ©2021 Breitbart News 149 S. Barrington Ave. #401 Los Angeles CA 90049 USA     Want to change how you receive these emails? You can *update your preferences or *unsubscribe from this list.  Subscription Information This message was sent to  Webmaster220 Bible Study Blog *the blog owner has deleted the hyperlink intentionally   Known for his network of conservative Web sites that draws millions of readers everyday, Breitbart had one main goal: to make sure the "liberally biased" major news outlets in this country cover all aspects of a story fairly. Breitbart is convinced that too many national stories are slanted by the news media in an unfair way. Here, Breitbart talks about the key issues that Americans face, how he has aligned himself with the Tea Party, and how one needs to deal with the liberal news world head on. Buy from Alibris.com Righteous Indignation: Excuse Me While I Save the World! by Andrew Breitbart  Buy from Books-A-Million.com Righteous Indignation: Excuse Me While I Save the World! by Andrew Breitbart