06 Oct Evergrande’s collapse could be very bad for Australia and the world. Here’s why
For the first time since the collapse of Lehman Brothers in late 2008, there is a serious risk of global financial contagion.
That is, there is a possibility that investors, en masse, will withdraw their cash from major institutions around the world and those banks in turn will not be able to meet their own funding or lending obligations.
It’s colloquially known as a “credit crunch”.