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Heavy-Handed Politics

"€œGod willing, with the force of God behind it, we shall soon experience a world
without the United States and Zionism."€ -- Iran President Ahmadi-Nejad

Tuesday, June 07, 2005

China's Unyielding Banking Crisis

Corruption and Cronyism Often Thwart Efforts to Eradicate Bad Debts

By Peter S. Goodman
Washington Post Foreign Service

CHENGDU, China -- As he rose through the ranks at China's largest lender, Zhang Guilin helped build the bad debt crisis plaguing his country's banks, the gravest threat to this fast-growing economy. Zhang directed funds to cronies and political allies, authorities here say, adding to a national toll of bad loans estimated at $500 billion."

Read the full story here.

As a side note, HeavyHanded says: They have alot of bad loans in their economy, as stated above, and it's estimated that the bad debts total about 40 percent of their GNP.


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