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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (348976)	8/30/2007 5:59:25 PM
From: tejek	Respond to of 1578460

One thing is clear you can't be doing what they are doing without huge cash reserves." Not strictly true. Their banking system is not regulated. So, if you have personal connections, getting a loan is a snap. And that is driving a lot of their building boom. So, no matter how hare-brained the project is, it can be built if the builder knows the right people. I wasn't even talking about the commercial building. I was referring to the infrastructure improvements......like the massive subway development they are doing in Shanghai and 3 other cities or that huge dam on the Yangtze. Even with cheap labor, they needs tons of cash to build that stuff. They had to have been accumulating cash for decades. As for the commercial building boom, I agree with you completely. How are are all those holders of commercial buildings in the cities with no tenants making their mortgage payments? How are the banks continuing to function holding all those 'bad' loans? I suspect the same source for the infrastructure improvements is also the source for the banks. And when that source runs out......forget a banking crisis.....I suspect the world goes into a depression.