This is a

CBS I in the world. I'm John Bachelor. The Chinese miracle includes

What do you do about Evergrand? Evergrand is a Chinese developer that as of a few years ago could not be topped anywhere in the world.

Buildings going up, people buying apartments, the Chinese economy humming along

she Jin Ping saying a different kind of capitalism and now Gordon Chang I had Gordon

Chiang is with me and we're very pleased to welcome our good colleague and Stevenson

Yang, the author of Wild Ride, China's short-lived experiment in capitalism. The

wild ride continues in the person of Evergrand and this wonderful article in the financial times

The foreign investors left stranded in Evergrand's web of Chinese debt.

Now, there's some complications here, but what I understand is, in order to invest in China,

it was okay with deep pockets from outside, Deutsche Bank for example, or City, or Bank of America,

to invest in a cutout that existed in Hong Kong and because of that and they were promised

very good returns because of that they are now having difficulty getting their

money back from the collapse now that's the way I read it. You read it with the more

discerning eye. Is Citibank and Deutsche Bank are they screaming we got robbed? Good evening to you.

Good evening John John I mean you know it puts me in mind of the off quoted Claude Raine's character in Casablanca shocked shocked that there's gambling going on in this establishment I mean of problem. I wrote about this a decade ago and said that the offshore bonds of property

developers ought to be giving higher yields because even though they were paying 9%, the

onshore bonds for the same companies were paying

you know up to 15 percent

that's because onshore people recognize the risk so you know did foreign banks recognize the risk? Yeah, sure, but they were

getting 9% so they didn't pay attention.

Gordon, you have a question for a hat.

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