“The most lucrative trade of 90’s Soviet period was obtaining a bank loan (there were only state banks). Which was easy as long as you paid bank manager 20% straight in the pocket. It was up to you what you did with the 80%. Fast forward to today’s China. Special investment financing vehicle and state bank loan architecture has been in place for a long time and not just since 2008. As you can imagine such vehicles are predominantly used to skim a little bit off the top. Operator gets rich, lender gets rich, party official gets rich.  2008-2009 RMB 4trn stimulus is the payday system the operators were waiting for, a once in a lifetime chance.”

http://www.economicpolicyjournal.com/2013/07/the-soviet-setup-is-now-china-setup.html

Did you like this?
Tip Freedomwat.ch Staff with Bitcoin

Donate via Installed Wallet Copy