STAFF NEWS & ANALYSIS
China’s Landing Will Not End Softly
By Daily Bell Staff – May 11, 2016
Why China Is Prone to Bubbles … The only sure way for China to prevent new bubbles is to tighten credit, slow money growth and allow risk to price assets properly. If the government keeps stepping in to prevent falling prices and to bail out banks or other investors, the possibility of loss is discounted. The probability of an asset crunch like the ones Japan experienced in the 1990s and the U.S. in 2009 remains low for now, in part because of all that liquidity. But the risks are rising every day. – Bloomberg
This Bloomberg opinion piece repeats the propaganda that China’s leaders have created a rational economy. The second-largest economy in the world can therefore be manipulated into prosperity with the right moves.
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