'..bailed out by the central government if they default, but I disagree with this.'<blockquote>'The tightening policy is creating a lot of difficulties for local governments trying to repay debt, and is causing defaults. Our version of subprime in the US is lending to local authorities and the government is taking this very seriously. Everybody assumes that they will be bailed out by the central government if they default, but I disagree with this. It means that the people will ultimately pay the bill for it all, at a cost to the broader welfare.'
- Cheng Siwei, head of Beijing's International Finance Forum (
Source, 17 september, 2011)</blockquote>
Context<blockquote>
'..a deep one-to-three year recession followed by .. more realistic future expectations..'</blockquote>