Chinese police detain wealth management staff at the heavily indebted developer Evergrande
as Pettis keeps pointing out, everything looks good when prices are going up, then it turns out that many laws have been broken once the prices start going down, but it wasn’t really the law breaking that was the problem.
Is there any substantive difference between how it works in China and in America? It seems like white collar criminals in the US also only get busted when the scam goes bust and prices start to go down rather than up.
the details differ but yes the same general principle applies to all financial markets generally I think, nobody wants to look too closely when everybody thinks they’re getting rich and then later when it all evaporates everyone gets mad about it.