Monday, July 29, 2013

Detroit bankruptcy sends tremors through China

The L.A. Times reports:
Detroit’s deep financial difficulties may have prompted China to look more closely at its own debt risk. On Sunday, the Chinese government announced that it would be undertaking a comprehensive audit of local debt in China, an issue that has worried economists and others for its potential to shake the world’s second-largest economy. China amassed local government debt as it powered steadily through the global financial crisis in 2008, and experts question whether local governments are now burdened with more than they can manage.