The phrase ‘too big to fail’ still sends shivers down the spine of anyone working in, or connected to, the financial sector after the failure of Lehman Brothers in 2008. For those of us who lived through the global financial crisis and witnessed the speed with which financial panic spreads, the thought of history repeating itself is not particularly pleasant.
The developing Evergrande crisis in China is, therefore, being monitored closely in light of its similarities. Add in the limited information being made available and the unpredictable nature of the Chinese economy, and it is not a stretch to see a set of circumstances arising that cause global stock markets to plummet.
