What does this mean?

[Mega]

http://www.zerohedge.com/article/jim...t-loan-guarant

Mike

[Chris Coles]

Re: What does this mean?

http://www.zerohedge.com/article/jim...t-loan-guarant

Mike

The answer is easy, China has realised that their local governments have been doing the same thing that Greece had been doing, selling vapourware to cover up the shortfalls in their local disparity between income and expenditure. They are sending the FIRE sellers of the loans down the proverbial river.

[iyamwutiam]

Re: What does this mean?

The answer is easy, China has realised that their local governments have been doing the same thing that Greece had been doing, selling vapourware to cover up the shortfalls in their local disparity between income and expenditure. They are sending the FIRE sellers of the loans down the proverbial river.

Yes-actually I hope to see more of the same. A lot of these same 'banks' were involved in purposely overleveraging these towns, businesses etc. They knew very well the numbers would not add up -so it was definitely say it is predatory lending. It would be awesome to a series of towns/banks and such just declare bankruptcy in wave after wave after there is a realization of no taxpayer funded guarantee.

China is setting an important precendent -don't expect the central government to bail out these schmucks. The Us should do the same with California/NY etc and say -look bro -the US taxpayer is not on the hook for these huge interest instruments.

[Mega]

Re: What does this mean?

You know its only going to take a slight upward turn to rates & its over!
Mike