I didn’t live that era so really appreciate the story.
Some key takeaway so far:
- in early 2000s: “The market consensus was that China’s banking system was technically insolvent and badly in need of wholesale reforms. The main issue was nonperforming loans (NPLs).”
- It’s easy to hide NPLs by offering bigger loans; the best practice of “forward looking” was not used in early 2000s
- Gov will insist on a “good-looking” multiple
- There was an jokingly bet for a tennis match between Zhou and Summers – “the winner would get to set the exchange rate between the dollar and the Chinese yuan”
- Much more ups and downs than I imagined
- “Fortress Besieged” is a really good metaphor..