Book your ticket to happiness with Sun Express Airlines. This is John Bachelor, conversation with Anne Stevenson Yang and Gordon Chang about the property bubble that collapsed in China and what is to be done.

The unoccupied, unfinished, and yet owned high-rises all around China, the mansions all around China, unfinished, owned,

and yet nobody's getting their money back.

What has to happen? The threat to banks, the Central Bank and the

regional banks is profound. What has to happen? The Chinese people are

impoverished. What has to happen? Here Anne Stevenson-Yang has a

solution that is good and thoughtful and yet will the Chinese Communist Party listen to the lesson of its over-building and grotesque

credit creation?

Anne Stevenson Yang, her new book is Wild Ride following the story of the rise and

fall of the Chinese Communist Party's version of capitalism that failed.

You know, this is why ultimately what really ought to happen

is that they should mark these assets to market meaning you know 50% gets

cut off the top and they give the assets that are unremunerative to the families that already

paid for them and they swell the individual family balance sheet but they're not going to do that because they're

afraid of what happens to the bank so they really need to let go but they're not going to do that.

More of this later.

Book your ticket to happiness with Sun Express Airlines. So,