To: Robin Plunder who wrote (111966 ) 5/16/2015 8:31:26 AM From: bart13 Read Replies (2) | Respond to If you don't want to know anything about the large risks and facts of the dark underbelly and risks of China's or other country's financial systems, then don't read ZH. Also don't read ZH and other similar sites if you can't deal with heavily PR'ed viewpoints, noise and high emotion, and just pay attention to facts. The MSM and elites did nothing but laugh at and satirize the few who were calling for a housing crash or financial crisis, and people who were reading ZH and other similar sites had the last laugh. Stay with the establishment's mouthpieces like FT or The Economist.Meanwhile, local governments would not be allowed to use LGFVs to take on more debt because after all, taking out off-balance sheet loans was what got them into trouble in the first place, so tapping those channels again while simultaneously participating in the debt swap program would render the entire refi effort useless. Now, Beijing has done a complete 180 and will not only allow, but encourage local governments to accumulate more of the very same type of debt they are now swapping, meaning that even as the newly-issued debt-swap bonds decrease local governments' debt servicing costs, new financing via LGFVs will invariably carry higher rates just as it did before, meaning the whole program is a wash."
