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I was under the impression that the move of industry to China was due to cheap labor, not due to different banking regulations. Is it possible to get a loan in
by Buge 9y ago
I was under the impression that the move of industry to China was due to cheap labor, not due to different banking regulations.
Is it possible to get a loan in the US and use it to build a factory in China? How about vice versa? Because if so, then I don't see how banking regulations would change where a factory would be built.
- coliveira 9y agoWith few exceptions, you cannot get a loan in the US to do anything productive. Most of the loans given to business nowadays are to buy back stocks, private equity (M&A), or to speculate on real estate.
- landryraccoon 9y agoI’m sorry do you have a citation? I was able to get a line of credit and an installment loan from a bank for my small business. We didn’t do stocks, private equity or real estate.
- seanmcdirmid 9y agoSo that’s two more things than you can get a loan for from a Chinese bank if you aren’t an SOE (they only support real estate speculation).
- pas 9y agoYes and no. The US banking system uses a pretty complicated maze to spread risks. Banks help you organize a bond sale/auction, then "investors" buy your bonds (usually it goes for lower than nominal price .. but sometimes not http://www.livemint.com/Money/sM11Y0RuGHmvUiGFVgNecL/Corporate-bonds-attract-bids-worth-115-billion-from-FPIs.html http://www.livemint.com/Money/sM11Y0RuGHmvUiGFVgNecL/Corpora... ), and then other banks and institutions buy your bond (invest in it).
- will4274 9y agoThis is FUD. Billions of dollars are loaned to businesses (for purposes besides those you list) every year. See for example the SBA annual report (available online for free on sba.gov).
- coliveira 9y agoSBA loans are guaranteed by the government. They are zero risk loans for bankers, in other words, it is just another way to subsidize the banking industry.