Beijing May Need A Gigantic Bailout To Defuse Ticking Local Debt Bombs

BI: "....there could be some hidden debt bombs as a recent Bloomberg finding suggests that China's banks may be understating their exposure to runaway local borrowing by possibly billions of dollars that is raising fears of a government bailout."

Here are more details.  It appears that based on a Bloomberg News survey, the construction boom by many local governments as part of China's stimulus program that started in November 2008 have now become too big to complete and may require a bailout even bigger than the Euro debt crisis.

Read more: https://feedproxy.google.com/~r/EconForecastFullFeed/~3/AnoKxwkWYyk/beijings-great-bailout-to-defuse.html#ixzz1hsdg87lX