Solarbird (solarbird) wrote,
Solarbird
solarbird

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oh this is bad

Thanks to cow for pointing out this blog post talking about this Bloomberg story pointing out that 20% of new bank loans made in China from January thought May 2009 went right into the Chinese stock market. That's 1.16T yuan, or about US$170B. And that's how you've got an even-for-China freaky rally in Chinese stocks so far this year.

However, these schemes always end in tears. It's one of those "never do this" things. Ever. Bluntly, you should just assume this will crash and take the Chinese stock markets with it. It might not; I mean, it could work out fine. But it'll take a bloody blinking miracle.
Tags: economics
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