Glad you asked. Here’s what is going on with this article & most financial media (propaganda for the masses).

No matter what the threat — Evergrande, Lehman, giant meteor, etc the crowd has to be reassured, or lied to that everything will be ok. Markets are psychological. (cont)
The media doesn’t exist to inform you, but to herd you. Wall Street doesn’t exist to make you money, but to make money off of you.

In a Ponzi scheme everything works until it doesn’t. Music stops. Game over.

Remember “Subprime is contained”? That’s what’s going on. The big lie.
Back to China — Xi doesn’t want a financial collapse and will try to prevent it. Can he? Idk, maybe. If so for how long? China’s economy only works with continuously high GDP, more consumption, population growth, etc.

Real estate is in China is > 30% of GDP and collapsing.
When something that large falls fast there’s nothing you can do to stop it. Critical mass. Any temporary solution/fix comes with more expensive consequences to broader financial system down the road.
Xi is currently pushing “return to roots” soft cultural revolution. I think he sees this as good time for financial cleansing, and a recession as not only survivable, but something that harms his enemies more (like Covid did).
Now if he were to pull out all stops to try to patch the failing real estate and commodity sectors he would risk the entire financial system if he failed and likely cause a revolution that ended the party and decades of progress. Game theory.
Imo Xi’s path of least resistance, one that accepts short term pain for long term gain is a controlled demolition of part of economy & rebuild. Xi still owns everything and Wall St & foreigners left holding the bags. The financial pain on foreign markets would eclipse CCP’s pain.

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