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China's Ponzi Schemes and Poway, California

KrankyMike Wrote: Aug 12, 2012 10:44 AM
Is Barney Frank involved in any of this? If not, it's probably not as Fannie Mae was back in 2008.

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"