Re:China Busts a $3B Underground Bank
by narrator on Friday November 24, 2017 @07:07AM
(#15770658)
The government of China bails out industries all the time. However, they do it with money they print up on an as needed basis that doesn't incur debt to the government or require future payments for this debt by the taxpayer. This means that bailouts have no effects on the taxpayer in China while they burden the American taxpayer for years to come.
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Re:China Busts a $3B Underground Bank
by seanmcdirmid on Friday November 24, 2017 @08:09AM
(#15770845)
This isn’t completely true. The government makes the banks lend money to the SOEs with the implicit backing of the people. Much of china’s private sector debt is actually public sector debt in that way. When the loans go bad, they have to recapitalize the banks, which is when the printing presses are used.