“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
A la Japan in the 80's and 90's.