<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/14957480-6e8c-464e-a0e7-aa5f2a4ca0cb/4AEF2F42-88CD-4E0A-8C9C-51FD15F9CBBD/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723" href="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723" style="font-size: 11px;">www.moneyandmarkets.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723"><H2 class="issueTitle">Credit Booms End in Tears; Will China Be an Exception?</H2></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723"><P><FONT face="Verdana, Arial, Helvetica, sans-serif">Some economic figures, such as those for housing and autos, seem to point to a strong recovery in China. Others, especially export figures, do not. This is a dangerous mismatch in my opinion, pointing to the development of grave misbalances. </FONT></P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723"><P><FONT face="Verdana, Arial, Helvetica, sans-serif">Will this stimulus turn out to be a short-term straw fire, or will it jumpstart the economy for good?</FONT></P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723"><P><FONT face="Verdana, Arial, Helvetica, sans-serif">We’ll have to wait for the answer. In the meantime, I see one very dangerous development in China today: Skyrocketing bank credit growth. </FONT></P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723"><FONT face="Verdana, Arial, Helvetica, sans-serif">In June, bank loans increased by $224 billion. For the first half of this year loan growth was up more than $1 trillion. That’s about three times the year-ago rate! </FONT></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.moneyandmarkets.com/credit-booms-end-in-tears-will-china-be-an-exception-2-34723"><FONT face="Verdana, Arial, Helvetica, sans-serif">This extremely strong credit growth is dangerous, because it goes hand in hand with lower credit standards. If you want to know what that means, just ask anyone at Fannie Mae or Freddie Mac about accepting risky mortgages. What’s more, nobody knows the risks inherent to the Chinese banking system! </FONT></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/4AEF2F42-88CD-4E0A-8C9C-51FD15F9CBBD/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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