The Chinese economic myth begins to show the occasional crack, where it could begin to break apart and it seems that the Chinese banking system is beginning to show more than signs of overheating.
That country’s banking had increased loans
In 2009, promoted by the Chinese government, in order to help overcome the crisis, that country’s banking had increased loans granted by 95.3% to 9.6 trillion yuan or 50% of GDP Chinese
With this data is anyone surprised that China had GDP growth in 2009 even though exports plummeted 20%? This is decoupling a beast economy! And the rest is nonsense.
In view of the magnitude of the drunkenness of money
At the end of 2009 the Chinese Government has begun to be aware that the issue was getting out of hand, and has promoted a more restrictive monetary policy, with direct order to the banks that they will moderate their loan granting drastically.
However, there are inertia that are difficult to stop at once, even for an economy as controlled as China. Already in January 2010, the accelerated rate of granting of loans continues. Specifically, the Chinese bank has granted loans in the amount of about 203,500 million dollars in January, almost 4 times more than the amount granted in the month of December.
These sudden increases in credit have their consequences
Obviously, these sudden increases in credit have their consequences, as we have already noticed in our meats in our country. Real estate prices in China continue to skyrocket, see post “China, the empty city”, in January the increase in the price of housing was + 9.5%, and the housing bubble that is being created in China begins to take dangerous proportions . We all know the movie as it usually ends. With the bank dragging a large amount of defaults.
It seems that the Chinese have proposed to replicate in 1 or 2 years the foundations of the evils that affect us that we built for almost a decade.