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The result was a now-familiar litany of mistakes: heavy lending to speculative real estate ventures, over-ambitious corporate expansions supported by ludicrous leverage ratios, and so on.
The authorities responded by rapidly increasing the money supply in early 2009 through currency market interventions and the authorization of heavy lending by state-owned banks.
The central bank has been helping commercial banks sustain extremely heavy lending this autumn by pumping record sums of money into the financial system.
The efficiency of heavy lending across the entire Chinese economy has plummeted, raising worries about the sustainability of Chinese credit-fueled growth.
Considerable cash is also sloshing around the Chinese economy because of two years of extremely heavy lending by state-owned banks to finance a highly successful economic stimulus program that has returned the country to double-digit growth.
The figures are the latest evidence that China's booming economy is beginning to overheat, after two years of heavy lending by state-run banks and huge government investments in infrastructure.
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And notwithstanding the heavy infrastructure lending of the past two years, the mix of the banks' lending will shift.
The Beijing government is increasing consumption with rebates, subsidies and heavy bank lending.
The men stand in the new, relaxed pose (the weight of the body being carried mainly by one leg) that was to be used by most sculptors throughout the period; and the women wear the peplos, its broad, heavy folds lending severity to the static composition.
State-controlled banks did the heavy lifting, lending freely through 2008 and 2009, but private firms too performed reasonably well, whereas some Western firms in emerging markets proved unreliable, cutting credit or even shutting down or selling out.This special report has argued that the experience of emerging-market banks will have a lasting impact.
As early as 2009, however, there were already concerns about the health of Chinese growth, largely because of worries about high property prices, heavy bank lending and overly aggressive investing by local governments, many of which had been amassing huge debts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com