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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Pogeu Mahone who wrote (43294)11/30/2008 3:23:00 PM
From: pogohere  Read Replies (3) | Respond to of 217867
 
The premise is "Most banks operating in China are owned or controlled by the Chinese government, and these banks' lending decisions are more likely to reflect official government policy than astute business judgment."

The western concept of solvency may have no meaning in this context. This type of banking may well only represent government investment without the notion of a return on investment as we understand it.

If so, any analysis that ignores this reality is bound to be useless in trying to understand China.



To: Pogeu Mahone who wrote (43294)11/30/2008 4:06:16 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 217867
 
the USSR never had mortgages - do you know how many new cities where build under Stalin and his followers rule? - It ended up with the collapse of the Soviet Union but not because of mortgages - but overbuilds its army

My point- as long as you build things people really need no matter how much debt is issued - they will pay it off - build something of great proportion that people do not need - as a country you go bust – too simplistic but true