China's shadow banking system is getting larger.

[Swampy]

What happened to Wall Street a few years ago will happen to China's shadow banks, and they've gotten big enough to bring down the Chinese economy. I'm getting concerned, because, while I've been expecting a bubble bursting, this is a far more serious danger.

[mcnoch]

I agree with this, European authorities are pressuing the Chinese and other Asian governments since a couple of yers to do more to bring this shadow-sector under control, but it seems the involved money is too powerfull.

[Swampy]

If Lehman Bros and Bear Stearns can go down, so can these ones. And that's my concern, because the US had the Feds, but what do the Chinese have?

[mcnoch]

The Chinese government would step in directly in and rescue what they can, they have enough surplus money stored in gold, US$ and Euro. But the biggest impact would be on the many small to medium companies depending on these credits. If they would go out of business there would be a critical shortage on many components we need for our products and daily life.