Credit Suisse Says Chinese Banks Bankrupt

I've posted previously about the ecnomic sitiation in China with posts like Chanos Sees 'Deterioration' in Chinese Banks, Marc Faber Says China is The Reason The Markets Are Down, Jim Chanos Talks About China And Debt, China Loan Shark Market Crashes; Scores of Chinese Business Owners Unable to Pay Black Market Loans Commit Suicide or Disappear.

Now, Credit Suisse says that “NPLs [non-performing loans] would work out to 65–100 percent of banks’ equity,” That means, according to their annalysis, Chinese banks may be insolvent.

This issue is not getting much attention. And this highlights an important investing principle. You don't invest the front page, you invest the back. What that means is that once something is well known it is fully priced into the market, so you can't make money on.

The China troubles are just starting to get attention, and once the massive short squeeze in the markets has completed, it may be a good chance to short China sensative stocks. More on that soon.