Intuitively, the Eurobanks were wreaked by the huge amount of bad paper bought from the USA in particular, thanks to the sub prime loan scam. This was fixed by cashing out most of that bad paper.
Only problem and this is world wide , there was no way to replace those lost assets. They simply do not exist in the volumes needed. Thus the banks saved themselves on one side of the balance sheet but were totally marooned on the other side.
The solution of course is to end global poverty and adjusting the banking system as well. However no one is going to listen to this. In China they need to do at least that as well.
Alhambra: China's Economy Is Not Crashing, It's Worse Than That
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by Tyler Durden
Sat, 10/20/2018 - 22:10
China’s economy is not crashing. Hyperbole works both ways. Last year and this, the smallest increment above a prior number was broadcast out as the greatest thing ever (US wage growth in particular), irrefutable proof of globally synchronized growth. Now that that’s over with, largely, there will be a tendency toward the other extreme.
The latest Chinese economic statistics are for several of them the lowest in some time. Starting with real GDP, at just 6.5% in Q3 2018 it’s the slowest pace since the first quarter of 2009. That’s not good especially for a statistic of such dubious practices often specifically crafted to be the best it can be.