In one stroke of the pen, China virtually eliminates municipal lending - DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate

**kictainiSot** · 08-03-2010, 10:30 AM

China has declared all local government loan guarantees (and therefore, all lending of any kind at the regional and local level) to be void transactions that have no contract force.

To put this in perspective, this is the same as the Federal Reserve saying that all borrowing by state and local governments is now illegal and their paper is worthless.

Jim O'Neill's Weekend Just Got Really Bad, As China Prepares To Nullify Local Government Loan Guarantees | zero hedge

08-03-2010, 10:30 AM	#1
kictainiSot Join Date Nov 2005 Posts 536 Senior Member	In one stroke of the pen, China virtually eliminates municipal lending China has declared all local government loan guarantees (and therefore, all lending of any kind at the regional and local level) to be void transactions that have no contract force. To put this in perspective, this is the same as the Federal Reserve saying that all borrowing by state and local governments is now illegal and their paper is worthless. Jim O'Neill's Weekend Just Got Really Bad, As China Prepares To Nullify Local Government Loan Guarantees \| zero hedge Share Share this post on Digg Del.icio.us Technorati Twitter
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