Well, the sooner they implode, the better [for later they'll only become bigger and more powerful]. The least we could do to hasten it is to boycott everything made there.
Stratfor has been reporting on this issue for about a year. Finally people are starting to see what's going on, and it's being publicly said that there are serious issues within Chinese banking sector. Earnst and Young were not the only ones - their report was followed by a number of other reports that also placed the numbers of bad loans between 500B and 1T. Some have said that it may be even worse, due to lack of transparency in the Chinese banking system.
They're headed the same place Japan went to when its economy collapsed in the 90s. Except China is far less prepared to deal with that fallout.
Read or watch "The Commanding Heights", a book and a program done surprisingly well by PBS, that is available on DVD. It is 6 hours long, and shows all the economies and governments of the world during the 1900s. It is mesmerizing.
And maybe a clue as to why big capital is not rushing off to develop alternative petroleum sources like there's no tomorrow. The ripple effects of a collapse of the Chinese economy would drop energy prices like a rock.
“Loose credit has become a way of life not only for China's bankers but also for its bureaucrats and party officials.”
This is bad news for the Chinese economy; rudimentary Austrian-school economic analysis shows that government-induced artificial easy credit policies create unsustainable short-term economic booms that are bound to come crashing down as the expansion consumes the capital stock necessary to keep production going. Unless the banks’ reckless behavior is fixed, the Chinese economy may soon enter the bust portion of the boom-bust cycle.
I am
G. Stolyarov II
http://www.panasianbiz.com
http://www.zhonghuarising.com
http://www.risingsunofnihon.com
L