2,100 banks could be affected as China looks to curb the bad loan environment of its rural communities, Bloomberg reported.
    • The Snark Urge@lemmy.worldEnglish
      0·
      5 months ago

      They’re trying to authoritarian their way out of a massive speculation bubble.

      I don’t think it will work, unless you can will away a black hole. Debt is a kind of gravity.

      • GreatAlbatross@feddit.ukEnglish
        0·
        5 months ago

        If they’re external creditors, it makes it a lot easier for them to go “nope, not paying that, what are you going to do?” when they’re one massive state-backed monolith.

        • gravitas_deficiency@sh.itjust.worksEnglish
          0·
          5 months ago

          Sovereign default is a thing. It’s a short term solution that can get a country out of immediate danger, but has very negative long term effects.