What China developer Evergrande’s debt crunch means for U.S. investors: Ed Yardeni

What China developer Evergrande’s debt crunch means for U.S. investors: Ed Yardeni

A debt crunch involving has caught investors' attention in the past week. , the Shenzhen-based company, is facing a default on its debt burden of roughly $300 billion. The crisis has echoes to the Lehman Brothers bankruptcy, which marked its 13-year anniversary last week, a development that at the time sent shockwaves through global markets. Ed Yardeni, president of Yardeni Research, says it's unlikely Evergrande will have a fallout quite as severe as the Lehman bankruptcy when the global economy and credit markets collapsed. Instead, he sees it as analogous to a different event a decade even earlier. "If it's similar to anything,  it's similar to Long-Term Capital Management, which is the calamity that occurred in 1998 but that was dealt with very quickly by the and the major banks and it didn't have any global implications," Yardeni told CNBC's " " on Friday. Like with hedge fund Long-Term Capital Management, Yardeni sees government intervention in Evergrande preventing any collapse and contagion. "The reality is it is too big to fail, and I think the Chinese government is going to intervene big time. I don't think they're going to save management… but it will be restructured and in a