CITYBLOGGER..PENAFIAN Laman ini tidak bertanggungjawab atas hasil penulisan yang dipetik dari sumbe

It is fortunate that the China real estate isn't leveraged out as much as assets in the US were. This may allow it to only be a "correction" instead of a "crash" as we had.

Banks in the US own a lot of assets and are still as highly leveraged as ever. In 2005, Congress was paid by the bank lobbyists to pass legislation allowing banks to increase leverage from 12.5-to-1 to 30-to-1. This allowed them to buy 150% more assets with the same base capital, adding fuel to the bubble. At 30-to-1 leverage, a bank's assets only have to go down 3.3% to make it bankrupt.

Until this bank leverage is decreased, we'll have instability and possibility of another Minsky Moment.Planes .boats.. and women 3 things that should only be rented never ownedMaybe we need some lessons from the Chinese. The same exact things are happening here every day but the government allows it under the cover of Lobbying. And let's not even get down to the corruption in the police force and governments and their cover ups, please. These are people we entrusted with our lives and all they do is take take take. I am glad China is starting this maybe we will follow.