@bswud to the extent invested, mainly malinvested. Most seems to have gone into Chinese construction (due to PBOC distortion, SOEs, etc)
@bswud Well, higher capital adequacy ratios means they haven’t lent it all out. But that’s a secondary factor.
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@bswud The primary issue is that credit creation hasn’t gone into productive assets, it’s gone into financial engineering (buy-backs e.g.) & -
@bswud into malinvestment in physical assets (Chinese factories, EM mines, US oil wells). Why? At a guess, due to macroeconomic uncertainty, - 2 more replies
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