Andy Xie: Fear the Dark Side of China's Lending Surge

[WildspitzE]

Re: Andy Xie: Fear the Dark Side of China's Lending Surge

Don't think it will work as the chinese have no social saftey nets. No social security, medicare or medicade. They actually know they will have to fend for themselves when they can no longer work. As these systems take a long time to set up and become entrenched they will not spend in the near future and they will continue to save as this crisis has most definately confirmed that their prudent personal saving is the right course of action.

By pillaging, I didn't mean that the government would ask for their savings. Last time I checked inflation didn't say please for my savings.

[fliped42]

Re: Andy Xie: Fear the Dark Side of China's Lending Surge

By pillaging, I didn't mean that the government would ask for their savings. Last time I checked inflation didn't say please for my savings.

agreed didn't look at it that way.

[touchring]

Re: Andy Xie: Fear the Dark Side of China's Lending Surge

By pillaging, I didn't mean that the government would ask for their savings. Last time I checked inflation didn't say please for my savings.

They don't do this in China. Pillaging is done in broad daylight.

State company officials are taking the equivalent of hundreds of billions of dollars out of state banks, putting in hundreds of billions into construction projects with no real business plans, other than getting tens of billions in kick backs from builders, possibly by their friends and relatives, and then sending the money to Hong Kong and Singapore.

Think i'm exaggerating? Chinese officials are even involved in the drug business, not to mention money laundering of state funds.
http://www.upiasia.com/Society_Cultu...h_police/7332/