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A comment on Baoshang collapse threatens China's economy, may trigger central bank response.

Re:Baoshang collapse threatens China's economy, may trigger ... by mhkool on Saturday June 29, 2019 @07:50PM (#20315564)
Banks fail sometimes and there is no regulation or risk management system that can prevent it. To increase protection for clients and economy one could by law introduce 'bank types' where, for example the type 'low risk' is only allowed to do transactions with low risk with of course lots of options to define what 'low risk' is.
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Re:Baoshang collapse threatens China's economy, may trigger ... by Rebelgecko on Sunday June 30, 2019 @12:55AM (#20316425)
Gotta be careful with that. Someone might get the bright idea to combine a bunch of smaller medium risk transactions to diversify and reduce risk. Then you end up with 2008 all over again
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Re:Baoshang collapse threatens China's economy, may trigger ... by mrunkel on Sunday June 30, 2019 @06:09AM (#20317403)
We used to have something like that in the US.

Namely https://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_legisla...

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Re:Baoshang collapse threatens China's economy, may trigger ... by LorenPechtel on Saturday June 29, 2019 @08:40PM (#20315714)
While banks sometimes fail this is the tip of the iceberg. The government has been using the banks to keep the economy on high, never mind that an awful lot of the loan security is not worth it's paper value.

I'm sure you've heard of the ghost cities?

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