Quandang Joke: Who is the creditor of local government debt? (Reprinted)

The bank. Because I have never heard of local government bonds and no one has bought them. ... Ordinary people have only bought government bonds. Indeed, China's local governments have no right to issue bonds because the central government knows that local governments will do whatever they want and cannot control them. So you have never seen or heard of local government bonds. The central government had an agent for issuance in the past, but because no one bought it, the local government found another way out... 1. Local governments have taken the lead in registering some investment companies, and the government calls these investment companies: financing platforms. Its name can be an urban construction development company, an urban construction asset management company, etc. 2. Local government establishes projects, such as: building highways, building airports, building government buildings...etc. 3. These companies on the financing platform go to banks for financing with government projects. Because they are government-backed companies and government projects, the financing is subject to the approved amount. 4. Of course, banks know what local governments are. Most of this money will never come back, and the risk is very high. So the bank resells the creditor's rights to a trust company, such as 1 billion in financing. The bank says I will keep 2% of the interest, and you take over the rest. The contract is for 5% of interest, and you still have 3% to earn. Although the trust company also knows what the government is, it cannot ignore such a big business. What should we do? Just resell it, right? It will definitely be easier to sell if the interest rate is higher. Anyway, as long as it is sold, the trust company has no risk and no responsibility. Therefore, the trust company made these debts into project investment products, such as: urban construction companies building highway projects... and so on. There are various kinds, collectively called "financial management products". 5. The trust company takes the "financial management products" to the bank and lets the bank sell them as an agent, and there are rebates. 6. The bank prints some advertisements, opens a "financial management room", and assigns a financial manager to look at the deposit amount of the depositors and make sales calls to the depositors. Call rich people "VIP customers" and please take a seat. At this point, who are the creditors? Understood? …Whoever buys financial management products is the creditor of local government debt. If something goes wrong, it means it's not honored. (Hua Xia Bank lost all its money last year, and it seems to be a VIP product starting at 500,000 yuan.) Go find a bank. Taking Huaxia as an example, the bank said: There is no bank seal anywhere on the signed contract. The bank is just a sales agent. (Hua Xia Bank went even further, saying that the financial manager acted as his own personal agent, and the bank did not know about this.) You look at the clauses in the contract and go to the trust company. The trust company says: This is a project of the urban construction company, and we are just a trust company for financial management. Just like if you lose money after buying PetroChina stocks, you can't go to the securities company where you opened an account. You go to the urban construction company again, and the urban construction company says: Go to whoever sold it to you! ...You go back to the bank again, and the bank says: Whoever you signed the contract with is the one you go to! You said: It clearly says capital guaranteed! The trust company said: This is a government project. The government not only says it will guarantee capital, but also says it will provide subsidies. If you don’t believe me, ask the government! ...You say forget it, I won’t look for you anymore, just file a lawsuit. Litigation! I am a VIP customer and I haven’t been defrauded yet. I still have the financial, material and manpower to write a complaint! Only then do you realize that the lawsuit must be fought in the court where the defendant is located. The bank is local, the trust company is in Shanghai, the urban construction company is in Beijing... The defendant column cannot be filled in, so there is no way to fight.