THE COMING ECONOMIC PERFECT STORM. 3 Major Bubbles about to Burst: Oil, China, & Wall St
July 19th, 2013
BEIJING (AP) — China has ended controls on bank interest rates in a move toward making its financial system more market-oriented.
The change announced Friday by the central bank comes amid promises by the ruling Communist Party to make the economy more efficient and productive.
Analysts say one of the most important changes will be to overhaul China’s banking industry that subsidizes state industry and lends little to entrepreneurs.
Krugman: “China is in big trouble. … Not some minor setback along the way, but something more fundamental.”
Key point Krugman misses: China isn’t so much hitting a wall as bringing itself to an emergency stop. It’s deliberate