A collapse of property schemes, commodity schemes, and other
investments schemes in China is well underway. The Ponzi schemes all had
one thing in common: they needed an ever-growing pool of suckers to pay
the returns promised to investors.
Well, the pool of greater fools finally ran out, and Shadow Bankers Vanished Leaving China Victims Seeing Scams
Read more: http://globaleconomicanalysis.blogspot.com/2012/09/chinas-shadow-banking-system-collapses.html#ixzz26LDvoWqm
Well, the pool of greater fools finally ran out, and Shadow Bankers Vanished Leaving China Victims Seeing Scams
China’s slowest economic growth in three years and a slumping property market, where many so-called shadow-banking investments are parked, are squeezing millions of Chinese who have invested the money of friends and acquaintances chasing higher yields to honor those payments. The slowdown also is putting pressure on the government to rein in private lending to avoid a spate of defaults that could increase the number of victims and lead to social unrest.
Suicide, Bankruptcy
The shadow bankers are now disappearing, committing suicide or reneging on agreements, leaving thousands of victims in their wake. In the first half of the year, more than 58,000 lawsuits involving disputes over 28.4 billion yuan in private lending were filed in Zhejiang province, where Wenzhou is located, up 27 percent from the same period in 2011 and the most in five years, according to the provincial supreme court. One-fifth of the cases were in Wenzhou, where authorities have set up a special court to handle the surge.
Read more: http://globaleconomicanalysis.blogspot.com/2012/09/chinas-shadow-banking-system-collapses.html#ixzz26LDvoWqm
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