Sunday, January 23, 2011
More bank skullduggery that should be broadcast from the rooftops.
Everyone in Britain now knows that horrendous costs are being imposed on Irish households to pay for the fraud, criminality, etc by Irish politicians and bankers.
However, it seems that the same thing has been going on in China for years and on a hundred times the scale. For several years, Chinese households have had their standard of living supressed by around 20% or so to pay for the non performing loans in the Chinese bank system that existed ten years ago. See this article by Michael Pettis. (Hat tip to Naked Capitalism for the information)
As for the current lot of non performing loans, seems the Chinese authorities have not started to think about what to do.
The costs imposed by the world’s banking systems on households are utterly horrendous.