The story, “China Tells Banks to Curb Lending Sources,” was published by the Boston Globe on November 19, 2007. The related headline story, “China Freezes Lending to Curb Investing Frenzy,” is published on the Wall Street Journal on November 19, 2007.
Statement from the Article (Boston Globe): “The Wall Street Journal on Monday cited banking and regulatory sources as saying that banks were being required to ensure that their outstanding loans at the end of the year did not exceed the level as of October 31.
An official at the China Banking Regulatory Commission (CBRC) denied that the agency had laid out such a specific target.
"No, no. We only require the banks to control lending reasonably," Lai Xiaomin, a spokesman for the CBRC, said of the newspaper's report. "We have not set fixed quotas for them."
My Opinion: “Isn’t it great to be an American!”
I cannot imagine a world where the fiscal sector regulates not only the reserves that banks hold on deposits, but also the amount in which the bank can loan out. Let’s think about this. In the last week, we have heard about the following:
1. Chinese price controls fail
2. Chinese inflation results
I think that sometimes we take it for granted that we live in a Democratic State! Just think about living in
I am happy that my government does not interfere with my daily life like the Chinese government does with its people's lives. It is an unwise decision to inhibit investment. It directly lowers saving for, and production in, the future. Isn’t it great to be an American.