Anorak News | China To Blame For Banking Crisis

China To Blame For Banking Crisis

by | 8th, October 2008

IT’S what Anorak’s been saying. China is the big elephant in the dealing room. Sebastian Mallaby:

The real roots of the crisis lie in a flawed response to China. Starting in the 1990s, the flood of cheap products from China kept global inflation low, allowing central banks to operate relatively loose monetary policies. But the flip side of China’s export surplus was that China had a capital surplus, too. Chinese savings sloshed into asset markets ’round the world, driving up the price of everything from Florida condos to Latin American stocks.

Well, yes…

Banker Aide: Britain Invests In Keeping China Sweet

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