Tough Choices for Banks and Students

Maintaining the stimulus policy would require a continuation of extremely generous commercial bank lending, writes Michael Pettis, quoting Lu Pei, an economist writing for Caijing. And that while companies seem to be in a rather weak position to finance debt with earnings. The banks may continue to pump money into the economy, putting up with defaults and inflation – or limit their loans further down this year, thus triggering an outright “hard-landing”. The former approach can only work if the duration of the global slowdown is short and light, writes Pettis.

Meantime, the college entrance exams continue – many candidates were reportedly tested on H1N1 flu before being allowed into the exam venues. Premier Wen Jiabao encourages students to find grassroot jobs in less developed regions.

Our Countryside is already very Modern.

Four Modernizations: hard landing in the countryside

That might be an individual hard landing, as Xiao Gongzhu, currently spreading scientific knowledge in the countryside, has found out.

Related: John Garnaut on Recovery, Huang Yasheng on white-collar jobs, February 20

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