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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-18-11 08:19 PM
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Is China the next big crisis?
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More warnings on Chinas debt
Commentary: Shadow banking sparks new worries

By Craig Stephen

HONG KONG (MarketWatch) Three years ago, Chinas banks were widely applauded as they lent their way out of the last financial crisis, hauling much of the world with them. But now with these loans coming due and interest rates on the rise, officials and analysts are increasingly sounding the alarm.

Throw into the mix new revelations about the escalation of shadow banking, and its little surprise China and subprime are increasingly talked about in the same breath.

So far, the loans causing most unease are with local-government investment vehicles, estimated at up to $1.7 trillion. Cheng Siwei, a former vice-chairman of the standing committee of the National Peoples Congress told the World Economic Forum last week in Dalian: Our version of the U.S. subprime crisis is the lending to local governments, which is causing defaults.

But this is by no means the only lending worry on the horizon. ............(more)

The complete piece is at:

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  -Is China the next big crisis? marmar  Sep-18-11 08:19 PM   #0 
  - The more I look "under the hood" in China.  RandySF   Sep-18-11 08:23 PM   #1 
  - List of assets owned by News Corporation  jaxx   Sep-18-11 08:41 PM   #2 
  - China has a real estate bubble, and it's about to go pop.  Ikonoklast   Sep-18-11 08:44 PM   #3 
  - That's impossible! China is a bastion of pure capitalism and that can never fail.  white_wolf   Sep-18-11 08:46 PM   #4 
  - yes it is....  madrchsod   Sep-18-11 09:11 PM   #5 
  - China is one giant unsustainable bubble right now.  Odin2005   Sep-18-11 09:14 PM   #6 
  - what do you mean, exactly?  AverageJoe90   Sep-18-11 09:20 PM   #7 
     - Rapid economic growth is the only thing holding off rebellion.  Odin2005   Sep-18-11 11:16 PM   #8 
     - I wonder what form that rebellion will take?  white_wolf   Sep-18-11 11:26 PM   #9 
        - The Chinese have a long historical tradition of overthrowing dynasties.  Odin2005   Sep-19-11 12:06 AM   #10 
     - Michael Pettis is one of the best sources for insight into the Chinese economy.  girl gone mad   Sep-19-11 12:16 AM   #11 
        - Some good links there. Thank you.  Prometheus Bound   Sep-19-11 04:55 AM   #13 
  - That's Crisis 3.0  JCMach1   Sep-19-11 01:08 AM   #12 

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