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The Emperor Has No Clothes


Parsad

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Something I have been concerned about for a few years is finally coming to fruition.  I believe that Chinese banks have over-expanded over the last several years and that the bad loans would eventually appear.  It seems as though some of the big Chinese banks have a $70B shortfall relative to regulatory requirements...and things are still relatively good in Asia...I can only wonder what the magnitude of the shortfall could become.  Cheers!

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=angRgjyJDhQQ&pos=6

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Read the "Coming Collapse of China" written in 2000 by Gordon Chang last week (+10 for hyperbolic title & poor timing ), the author continuously mentioned how horrible run the big 4 banks are. They have a history of writing bad loans during good times and having to be bailed out during the bad times.

 

With current infrastructure over capacity and the government demanding the banks to write loans to stimulate the economy - I imagine we are only starting to see the nakedness of the Chinese big 4. 

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