The Chinese financial crisis of 2014?

ChinaFotoPress/Getty Images

The Chinese financial crisis of 2014?
(Image credit: ChinaFotoPress/Getty Images)

Chinese gauges of financial stress — including the TED spread, which is the difference between interest rates on interbank lending and interest rates on government bonds — have widened sharply in recent days, suggesting that the Chinese financial system is under severe stress. The New York Times' Paul Krugman is worried:

The widening in the TED spread was one of the key reasons I was already very scared in late 2007. If past is prologue, we should be very worried about China now. [New York Times]

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John Aziz is the economics and business correspondent at TheWeek.com. He is also an associate editor at Pieria.co.uk. Previously his work has appeared on Business Insider, Zero Hedge, and Noahpinion.