Zhihu Author: Crown of Tokamak
There are three fatal aspects of urban investment bonds now, and each one is almost unsolvable.
-
Urban investment bonds are rigidly tied to the local operation of guaranteeing wages. A large amount of debt is created just to pay wages. Once the debt stops, the wages stop as well, not to mention other entangled issues like social security.
-
Most of the deficits in urban investment bonds are not due to corruption, but rather from leveraging projects, causing deficits from robbing Peter to pay Paul. This means you can't even fill the deficits by cracking down on corrupt officials.
-
Urban investment companies often have extremely aggressive financing schemes to raise funds to complete political tasks. Many of their schemes cannot withstand scrutiny, as a closer look reveals they are just temporary solutions that create more problems.
It can be said that current urban investment bonds are the most radical, cutting-edge, barbaric, and reckless area of global financial innovation, without comparison. Some Wall Street practices wouldn't even dare to go this far, but various urban investment companies not only dare to, but also have the ability to do so.
The problems are urgent and increasingly serious, what should be done? Perhaps only the heavens know.