China bubbling continues

March 29, 2010 at 3:23 pm Leave a comment

FT just reported on local governments using public land as collateral to borrow money to invest in infrastructure projects. What happens if the cash flow from infrastructure projects due to overcapacity is insufficient to pay back loans or worse interest?

Who says there aren’t leverage used in China?

http://www.ft.com/cms/s/0/369164e0-3a87-11df-b6d5-00144feabdc0.html

Entry filed under: Watch your step. Tags: .

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