No Meltdown As China Banks 'Healthy', IMF Says

[no_name]

the chinese banks do what the chinese government tells them to do.
when the government said lend money to wenzhou to overcome the credit crunch, the banks immediately lent money.

Governments naturally wants their financial sectors to be strong, because this is beneficial to their policy making and comprehensive power. To do this Governments sometimes tries to bend for banks or do some of the biddings for them. The banks interests becomes tied to the governments interests but if managed improperly the banks will eat out the governments in the end.

What China seems to settle for is for the government to take over the bank directly, to make sure bank's policy is aligned to the long term interest and wellbeing of the country. This is actually not in that much conflict because the government too wants the bank to perform well. In hard times the government will force the bank to bleed a bit, short pain is better than long pain. The government just needs people who understands economics.


Just needs to be realistic, practical and non-ideological. Don't care about what others say socialism this, capitalism that. Whatever works should be implemented. There is just no one answer for everything forever after, to think that way is being lazy. If tomorrow circumstances requires a different financial approach to today, then that is the way it is.

 

[Chinese Century]

How about a significant share of liability? Happy now? The deal between Americans and the Chinese is probably in the trillions for the Americans, for free. You know what I am saying? That deal is going "public."

find me a souce that says chinese bank liabilities are owned by the americans.

 

[SuperDoper]

find me a souce that says chinese bank liabilities are owned by the americans.

I think it's probably called H share, I am not sure. The true figure will never be published by the Chinese, and the Americans will never disclose this. Much like the secret pact between the Chinese and Russians, I guess the Chinese surrenders all terriotorial claims of Sieberia.

 

[Chinese Century]

I think it's probably called H share, I am not sure. The true figure will never be published by the Chinese, and the Americans will never disclose this. Much like the secret pact between the Chinese and Russians, I guess the Chinese surrenders all terriotorial claims of Sieberia.

LMAO!!!

riiiiiiiiiiiight.