User 273466

Can China Weather a Downturn?

Good insight in to the Chinese banking system. For years, the Chinese government is paying the bill for the ever growing bad loans which are not based on sound business principles, but on political interests of the provincial officials. To a large extent, the banks are used by government officials to their personal benefits. A substantial part of the bad loans end up in the pockets of corrupt government officials and businessmen. A hidden partnership has long existed between two groups to siphon taxpayers' money from state-owned banks to fatten their own purses. The Chinese government simply has no idea on how to solve this problem. For years, they are delaying or covering up this issue by pumping more money into this bottomless dark hole using taxpayers' money from the booming economy. Nobody knows when this bomb will explode.