The Sum Of All Risks: Why China Is Heading For A Greek Style Crisis On A Grand Scale

One arm of the government lends funds to another arm of the government, and everyone is happy, until someone must pay the bill. Then the situation turns ugly. That's what happened in Greece in 2011, when the country's semi-Soviet model collapsed, taking down a large and corrupt government that lacked the resources to finance its multiple roles in the economy. Now, think about the size of the Greek economy vis-à-vis the size of the Chinese economy. You can see why China's financial crisis could ...