Prof. Shih explains banks, shadow banks, massive debt, Evergrande, economic shocks, and President Xi's personal history that informs his ideology and policies. 

In December, one of China's largest real estate developers, Evergrande, defaulted on its loan. Evergrande is the "world's most indebted developer" and this was potentially "Asia's largest default". Prof. Shih cautions that this default and other looming real estate crises do not mean that the Chinese people and investors have lost faith in real estate assets. No! This recent crisis, which Prof. Shih is confident the PBOC will prevent from devolving into a market crash, was caused by government regulations, regulations meant to end the borrowing binge of giant private companies, companies that have become too powerful for President Xi's taste and conservative communist beliefs that seem to pivot China away from its roaring days of capitalism to something else, some form of economy that Prof. Shih explains in this episode.

This is the link to Prof. Shih's academic homepage: https://gps.ucsd.edu/faculty-directory/victor-shih.html

And these are the Amazon and University of Michigan Press links to Economic Shocks and Authoritarian Stability, a 2020 book edited by Prof. Shih and discussed in this episode.   

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