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John Authers

Evergrande Isn’t a Lehman. Now for the Bad News

State planning might have the tools to avert a debt crisis; the price may be a severe slowdown in economic growth.

They have the levers.

They have the levers.

Photographer: Wade Griffith/Moment Mobile/Getty Images

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The Evergrande panic isn’t everlong. After Monday’s selloff, which teetered on the brink of panic, stock markets pulled themselves together across the world. Meanwhile, investors appeared to believe that they had brought themselves up to speed on the troubles of China Evergrande Group, the country’s second-largest property developer. Google Trends shows that searches for the word “Evergrande” in the U.S. suddenly took off on Monday morning (even though the situation had been coming to a boil for weeks if not months). After activity peaked at 9 p.m. on the Eastern seaboard, it fell off sharply Tuesday: