big trouble in little china

[muldoon]

Over the last few months I am noting more and more companies blowing up and making news over here.  They are in the middle of a meltdown much worse than ours in my opinion.  However, they also control their media very well and little of the story gets out.  We also do not have the best media over here to force for these type of stories. 

This morning: http://www.latimes.com/business/la-fi-factory3-2008nov03,0,7768849.story
""Reporting from Shaoxing, China -- First, Tao Shoulong burned his company's financial books. He then sold his private golf club memberships and disposed of his Mercedes S-600 sedan.

And then he was gone.

And just like that, China's biggest textile dye operation -- with four factories, a campus the size of 31 football fields, 4,000 workers and debts of at least $200 million -- was history.

"We're pretty much dead now," said Mao Youming, one of 300 suppliers stiffed last month by Tao's company, Jianglong Group. Lighting a cigarette in a coffee shop here, the 38-year-old spoke calmly about the bleak future of his industrial gas business. Tao owed him $850,000, Mao said, about 60% of his annual revenue. "We cannot pay our workers' salaries. We are about to be bankrupt too."

Government statistics show that 67,000 factories of various sizes were shuttered in China in the first half of the year, said Cao Jianhai""

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just wow. 


Here are a few others that I recall and had bookmarked offhand.
http://www.reuters.com/article/worldNews/idUSTRE49G0BF20081017?feedType=RSS&feedName=worldNews -- toy factory riots when hundreds go unpaid. 

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCXLWJrDQFZ4&refer=home -- chinese ferro steel cannot repay loans, closing up shop.  (this is one of the largest in the world).  4.52billion in loans wont get paid back.

--
now going back the september post regarding problems in China central bank, I think the pattern is beginning to be clear.   http://www.nytimes.com/2008/09/05/business/worldbusiness/05yuan.html?_r=1&ref=business&oref=slogin 

--
my question is...  who is going to buy all this debt we are creating right now to pay for the bailouts?  With what money? 

[ScottA]

my question is...  who is going to buy all this debt we are creating right now to pay for the bailouts?  With what money?

I figure they'll just print it or digitise it.