And guess what? It is once again lack of regulation that leads to lenders losses
In Chinese city, lenders outraged as bosses flee - CNN.com (http://edition.cnn.com/2011/11/21/business/china-wenzhou-lenders/index.html?hpt=hp_c1)

Could we see an occupy Beijing movement?

Could we see an occupy Beijing movement?
They tried it once.
Tiananmen Square protests of 1989 - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Tiananmen_Square_protests_of_1989)

2600 protesters lost their lives as the tanks rolled over them.


The investors weren't suspicious when they were getting 70% in rates of return ? Stupid people get fleeced even with regulations... or are you saying the Chinese don't regulate their markets?? C'mon man!

Love this contradictory thought.

Liren is just one of hundreds of companies in Wenzhou that have been forced to borrow through underground loans and now are suffering from credit curbs implemented by the government to cool an overheated economy and real estate sector.

Economists blame the looming debt crisis in Wenzhou on a lack of government regulation and investment options for average Chinese citizens that fueled a billion-dollar underground loan market across China.


So in one paragraph they say that borrowers are forced to find financining in the underground market because of government regulations... and in the next paragraph they blame a lack of regulation... c'mon man!

Here is the fact. China decided to do stimulus by constructing a nation of Potamkin Villages. Not surprised that their artificial bubble burst. It is only slightly different than the artificial real estate market that this nation manipulated through feel good social policies that defied rational lending .

Yes Tom it is slightly different, you had bankers who cheated the system and the Chinese had bankers who cheated the system. In each case the government is blamed for creating the bubble and in each case the result is the same, the little people get hurt. We haven't seen the end of this, this is the beginning. What's missing is the international securitisation and the bond salesmen. I guess the Chinese just aren't that sophisicated and we should be thankful for that. What we can be sure of is there will be no bailout for these bankers, they will get their just desserts

If these bankers were running a black market for lending and were running Ponzi schemes then indeed they deserve punishment . However ;like the US bubble;it was government policy that caused this crisis... not the lenders.

I see no such malfeasance in what the US lending institutions did . They were forced to make loans that went completely against their lending formulas. That was government policy .

Anyone who has not read 'Reckless Endangerment' by NY Slimes investigative journalist Gretchen Morgenson should do so if they want to know what reall happened.

Stop excusing them Tom they went far beyond what was reasonable