A massive threat to China's banks is building, and it looks a lot like a Ponzi scheme

Reuters Fitch Ratings has released a warning on a threat building inside the $34 trillion Chinese banking system. Wealth management products (WMPs) have exploded in popularity over the past few years.  We've heard about these products blowing up investors' faces in China before, but the way Fitch makes it sound now, the situation has become even more dire. In fact it sounds like a Ponzi scheme, as banks issue new WMPs to pay for old ones: Fitch believes that the most common source of WMP repaym...