China - support for property sector

Banks were threatened by the failure of the property sector which was on the verge of collapse. Answer - the banks can lend more money (unsecured) to the property developers :confounded:

China may allow banks to offer unsecured short-term loans to qualified developers for the first time, people familiar with the matter said, a major push to ease the property crisis that’s dragging down growth in the world’s second-largest economy.

Err, sounds like a plan of sorts.

Seems like the Shiny solution. The base of the “supply side economic miracle” seems to be that everything can be cured by more debt. More debt for tax cuts. More debt for subsidy programs. More debt to inflate the stock market. More debt to inflate GDP.

debt per capita 2011-05-thumb-600x370-56188

RUN !!!