Moody’s didn’t report the “hidden liabilities” the Chinese government had been paying off over the past two years to failed state-owned companies. They created a kind of Troubled Asset Relief Program (TARP) and may soon have to bail out the banks that got stiffed on the loans they made. However, the rating agency may have overreacted to China’s debt, especially since the government has more control over its “assets” and can keep them in line. READ MORE
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