In response to:

China's Ponzi Schemes and Poway, California

Cincinnatus Redux Wrote: Aug 12, 2012 11:54 AM
And I used to live in the OC, including sending my kids to the now discredited Capistrano Unified School District with its financial mess. Budgets are about choices and these short term gimmicks always backfire and will hurt the kids they profess to help. Good finance, like good education, depends on sound fundamentals, not gimmicks.

Top Chinese banks are involved in Ponzi financing of investment deals, offering interest rates over 7% to depositors, to finance real estate projects gone bust and other projects whose assets are not even disclosed.

Banks label these schemes "Wealth Management Products" (WMPs) but any individuls foolish enough to invest in them are going to lose money, perhaps all of it.

Reuters explains in a special report China's answer to subprime bets: the "Golden Elephant"