2012-04-26 — huffingtonpost.com
Just like America, for example, China's banks are staggering under the weight of a bunch of bad debts, Reuters reminds us. China forced the banks to make these loans to pump up the economy, but now the economy is slowing down anyway, exposing the banks to losses. China has the cash to bail the banks out, but it could be expensive: "Such colossal government spending not only hurts state coffers," Reuters writes, "it risks fuelling inflation unless the central bank takes counter measures to soak up the extra cash." Trouble is, China's banks are still out there lending, including to first-time home-buyers, Bloomberg writes, in an effort to keep the property market afloat.
This shouldn't end badly at all.
source article |
permalink |
discuss |
subscribe by:
|
RSS |
email 
Comments: Be the first to add a comment
add a comment | go to forum thread
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.