I guess the world is flat after all

Reuters, via Paul Kedrosky:

Yi Xianrong, a banking and finance expert at the Chinese Academy of Social Sciences, said Chinese banks had been lax as they built up 3 trillion yuan ($396.2 billion) of mortgage lending. …

“The quality of housing loans are much worse than the subprime loans in the United States,” Yi was quoted as saying by the South China Morning Post.

“At least there has been a credit check system (in the United States) but in China anyone can borrow money to buy a house.”