Steel the New Gold in China as Physical Steel Collateral Vaporizing

Apparently in China, it’s not just gold, silver, and segregated client funds that vaporize in bankruptcies.

Reuters reports today that Chinese banks looking to seize collateralized steel have something in common with MF Global customers- their assets have been rehypothecated, and further- in many cases, the actual physical steel simply does not, and likely never did, exist: [Read more...]