Comments on: China to Relax Bad Debt Rules to Encourage Lending http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html Sun, 22 Nov 2009 11:45:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32166 Anonymous Mon, 12 Jan 2009 21:34:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32166 it is fortunate that china is able to weather any storm as it has the where - with-all to do it ( it actually has a reserve ), so it is able to do whatever it pleases<br/><br/>the USA on the other had is using chinas reserve to covers its problems---<br/><br/>the USA is in the $hitter - and the only place for it to go is down the BLACK TUNNEL it is fortunate that china is able to weather any storm as it has the where – with-all to do it ( it actually has a reserve ), so it is able to do whatever it pleases

the USA on the other had is using chinas reserve to covers its problems—

the USA is in the $hitter – and the only place for it to go is down the BLACK TUNNEL

]]> By: curlydan http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32156 curlydan Mon, 12 Jan 2009 19:19:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32156 i think that corruption--the cause of many bad loans in China in the past--has not ebbed in the years since the cleanup. Friends will get the loans and bad debt will once again rear its ugly head, probably more than expected.<br/><br/>FYI..just got back from 3 weeks in Guangzhou. Couldn't see much in terms of signs of a slowdown--maybe a few fewer cranes than usual but many building were still on the rise. I did hear from residents that housing prices were down 20-30% from the peak. I was there to visit in-laws and don't speak the language, so it's hard to get much info. i think that corruption–the cause of many bad loans in China in the past–has not ebbed in the years since the cleanup. Friends will get the loans and bad debt will once again rear its ugly head, probably more than expected.

FYI..just got back from 3 weeks in Guangzhou. Couldn’t see much in terms of signs of a slowdown–maybe a few fewer cranes than usual but many building were still on the rise. I did hear from residents that housing prices were down 20-30% from the peak. I was there to visit in-laws and don’t speak the language, so it’s hard to get much info.

]]> By: GloomBoom http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32139 GloomBoom Mon, 12 Jan 2009 17:32:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32139 Bottom line is that China needs banks to make loans to keep their economy going, something that is not happening in the west, and they will make sure it happens. One advantage of Communism. Bottom line is that China needs banks to make loans to keep their economy going, something that is not happening in the west, and they will make sure it happens. One advantage of Communism.

]]> By: Anonymous http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32134 Anonymous Mon, 12 Jan 2009 16:54:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32134 Anonymous above: NPL = non-performing loans.<br/><br/>I don't really see this as some ominous relaxation of "rules"... no more ominous at least than changing bank reserve requirements in any other context. Anonymous above: NPL = non-performing loans.

I don’t really see this as some ominous relaxation of “rules”… no more ominous at least than changing bank reserve requirements in any other context.

]]> By: tyaresun http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32125 tyaresun Mon, 12 Jan 2009 15:43:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32125 NPL, the next bubble. Profit from it. NPL, the next bubble. Profit from it.

]]> By: susie orman http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32124 susie orman Mon, 12 Jan 2009 15:38:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32124 The third strategy is to create an emergency fund. One can do this by saving at least 6 month’s income worth of money. This money will prepare you for any emergency expenses such as job interruption, repairs, hospitalization, and more. The fourth strategy is to ensure proper protection through insurances. The fifth and last strategy is to build long term asset accumulation by investing in stocks, mutual funds, etc. Again, there are a lot of people who want to attain financial freedom. The third strategy is to create an emergency fund. One can do this by saving at least 6 month’s income worth of money. This money will prepare you for any emergency expenses such as job interruption, repairs, hospitalization, and more. The fourth strategy is to ensure proper protection through insurances. The fifth and last strategy is to build long term asset accumulation by investing in stocks, mutual funds, etc. Again, there are a lot of people who want to attain financial freedom.

]]> By: Anonymous http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32092 Anonymous Mon, 12 Jan 2009 11:47:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32092 NPL? WTF?<br/>Link:<br/>http://acronyms.thefreedictionary.com/NPL<br/>Which is the right one ? National Paintball League? Nuclear Pumped Laser? NPL? WTF?
Link:
http://acronyms.thefreedictionary.com/NPL
Which is the right one ? National Paintball League? Nuclear Pumped Laser?

]]> By: Anonymous http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32068 Anonymous Mon, 12 Jan 2009 07:55:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32068 hmm, guess that ties in with the NPL boom likely to be seen in the next couple of years, but what's new? hmm, guess that ties in with the NPL boom likely to be seen in the next couple of years, but what’s new?

]]> By: Anonymous http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32065 Anonymous Mon, 12 Jan 2009 07:38:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32065 How can anyone expect that a country that pegged its currency to the dollar would avoid the risky behaviour of the dollar-zone?<br/><br/>Is is better to have an over-indebted industrial sector than over-indebted household? I have no clue.<br/><br/>In both cases, the system is utterly inefficient and makes no money back to creditors. <br/><br/>Savers beware... BoC is on a long-term gold-revival scheme, along with Bernanke and co. How can anyone wonder why the credit system is broken.<br/><br/>Credit implies an effective savings system... It is "currency policy 101". Any alternative implies heavy use of the printing press. <br/><br/>I expect a run on tangible assets before the end of the year. IMHO this one may have serious geopolitical consequences...<br/><br/>On the long run, the chances are quite high that these reckless behaviours draw the political entities that issue them (US federal government and China central power) into bankruptcy...<br/><br/>I have no doubt that both China and the USA can survive feeble government entities. But I feel that this was worth mentioning. How can anyone expect that a country that pegged its currency to the dollar would avoid the risky behaviour of the dollar-zone?

Is is better to have an over-indebted industrial sector than over-indebted household? I have no clue.

In both cases, the system is utterly inefficient and makes no money back to creditors.

Savers beware… BoC is on a long-term gold-revival scheme, along with Bernanke and co. How can anyone wonder why the credit system is broken.

Credit implies an effective savings system… It is “currency policy 101″. Any alternative implies heavy use of the printing press.

I expect a run on tangible assets before the end of the year. IMHO this one may have serious geopolitical consequences…

On the long run, the chances are quite high that these reckless behaviours draw the political entities that issue them (US federal government and China central power) into bankruptcy…

I have no doubt that both China and the USA can survive feeble government entities. But I feel that this was worth mentioning.

]]> By: Anonymous http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to.html#comment-32063 Anonymous Mon, 12 Jan 2009 07:29:00 +0000 http://www.nakedcapitalism.com/2009/01/china-to-relax-bad-debt-rules-to-encourage-lending/#comment-32063 They already have plenty of bad debt in "off balance sheet" units.<br/><br/>D They already have plenty of bad debt in “off balance sheet” units.

D

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