Ahhh the old' China crisis again! The dog that didn't bark. The Charlie Brown football that never got kicked. The constant and unending crisis that is on its way any day now.
As I have explained over the years in many previous comments, China's banking system is partially privatized central planning, the government prints it's own money. Thus, when there is a credit crisis the government just recapitalizes the banks with freshly printed Yuan and sells off the bad loans at a discount. Bankers who behaved badly get executed or disappeared and the whole thing starts over.
Don't believe me? Let's take a trip down memory lane on HN:
As I have explained over the years in many previous comments, China's banking system is partially privatized central planning, the government prints it's own money. Thus, when there is a credit crisis the government just recapitalizes the banks with freshly printed Yuan and sells off the bad loans at a discount. Bankers who behaved badly get executed or disappeared and the whole thing starts over.
Don't believe me? Let's take a trip down memory lane on HN:
China: Crisis Gauge Rises to Record High 2 points Cless 2 years ago 0 comments (http://www.bloomberg.com/news/2014-02-26/crisis-gauge-rises-...)
China Interbank Rates at Record High (think Lehman Bros.) 1 points teawithcarl 3 years ago 0 comments (http://m.theepochtimes.com/n3/118747-china-banking-crisis-in...)
China's Brewing Crisis Is a Thousand Times Greece's 8 points ytNumbers 6 months ago 4 comments (http://www.forbes.com/sites/panosmourdoukoutas/2015/08/25/ch...)
Skyscraper index points to elevated risk of financial crisis in China, India 2 points cs702 4 years ago 0 comments (http://www.scribd.com/doc/78470886/Index-Bubble-Building-100...)
China fears bond crisis as it slams quantitative easing 1 points chaostheory 7 years ago 0 comments (http://www.telegraph.co.uk/finance/newsbysector/banksandfina...)
China hit hardest by US Downgrade 2 points ca136 5 years ago 0 comments (http://gulfnews.com/opinions/editorials/us-crisis-hits-china...)
China’s Coming Economic Crisis? 3 points kercker 2 years ago 0 comments (http://www.nytimes.com/roomfordebate/2014/04/08/chinas-comin...)
Why China Will Have an Economic Crisis 1 points eande 4 years ago 0 comments (http://business.time.com/2012/02/27/why-china-will-have-an-e...)
Confidence of China VCs drops to new low 2 points ilamont 7 years ago 0 comments (http://www.thestandard.com/news/2008/10/29/global-economic-c...)