HSBC’s profit increased 10% last year to $24.2 billion (£12.2 billion), as the UK’s largest bank experienced strong growth in Asia, Middle-East and Latin America. Its results were better than many analysts had predicted. However, the bank has made a $17.2 billion (£8.7 billion) write-down after the decline in the US housing market hit the [...]

More: HSBC in $17 billion write-down

that is crazy 17 billion.

Crazy i agree but through strong business in Asian markets still have a lot of liquidity.

Last week a spokesman from HSBC explained of the banks eagerness to buy up existing mortgages with new rate deals being as a result of its far eastern businesses that are extremely liquid, and as a result HSBC currently has a “surplus of funding”.

The swiss financial giant USB reporting that its writedowns as a result of the sub-prime mortgage crisis have more than doubled to £18.5 billion, is a different stroy, and account for the biggest writedown by any bank since the global credit crunch hit.

What HSBC don't seem to realise is that a real economic bubble is growing in China - the economic boom is powered by debt. Haven't we seen this before?

Not really, China's economy has grown more than 10 per cent a year since 2003 and will be the world's biggest economy by 2010 - plus it exports all over the world so it's not stuck with one market.

Indeed, it's economy is growing - but all paid for with debt. The only reason China is able to import so much is that it's being given a longer line of credit than normal. People are selling to China on IOU's. A dangerous situation for sure, IMO.