In the 1980s, says Edward Morrison of Columbia law school, bankruptcy let entrenched managers at troubled firms avoid restructuring: for an example, he points to Eastern Airlines, which kept flying and wasting capital at cut-throat rates while in bankruptcy.
As a result, just when some of the other ingredients of China's boom, such as cheap land and labour, are becoming scarcer, the government is wasting capital on a vast scale.
That is why financial regulators need to make 2C stress tests standard practice for the energy sector to help avoid companies wasting capital," said James Leaton, research director at Carbon Tracker, a non-profit financial thinktank.
This constitutes a double economic crime: wasting capital and undermining excellent infrastructure.
Corruption: The largest form "comes from misuse of foreign monies".Next is the allocation of money for rebuilding Afghanistan is reallocated again and again, wasting capital.
China is therefore wasting capital that could be used for other things.
