### Comment:
China's banks are giving loans to each so they have enough money to give loans to the shadow corporations that don't do anything.

### REPLY:
Yes 
 The point being that China will have a major financial crisis at some point. The corruption, nepotism, incentives, and government power creates incredible inefficiencies, manipulation, and malinvestment. The bank lending is ridiculous and fraud is definitely taking place. Not to mention horrible accounting enforcement. I wouldn’t trust any Chinese companies financial statements. However, timing is tough and also the ability of the government to intervene is enormous.

### END.