India is not alone, China is facing a bigger economic crisis

February 03, 2014 10:40

Writing in The Telegraph, London, Harry Wilson says former Fitch banks analyst Charlene Chu has warned of the impending collapse of China's debt-fuelled bubble.

'In a country where the banks, even the largest, are not known for openness, Chu has warned since 2009 about a rapid expansion in lending that has seen something close to $15 trillion (9.1 trillion) of credit created, fuelling a property and infrastructure boom that has no equal in history,' says Wilson.

For her analysis, Chu, born and raised in America, has been feted by the world's money managers, while being derided back home, where she works out of Beijing.

Now with Autonomous, an independent research firm of repute, the Yale alumna has spoken up for the first time since leaving Fitch, saying that 'the banking sector has extended $14 trillion to $15 trillion in the span of five years. There's no way that we are not going to have massive problems in China'.

Perhaps it will help P Chidambaram to read what she has to say, here.

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