@michaelxpettis Ultimately you can’t answer structural mismatch without addressing payment mechanics. That’s what needs to change, and that component of problem is where we get into politics of local govt fiscal transition. Which again reinforces point that issue isn’t the infrastructure itself.

@michaelxpettis If land value is saturated of course payment using land will become inefficient. That doesn’t mean other parts of economy that derive value from infrastructure can’t cover costs. Not coincidentally long maturity bonds and tax burdens are small for China’s level of development.

@michaelxpettis All of these points to payments mismatch for infrastructure, not saturation. These are financial system dislocation problems, especially in terms of financing time horizons, not oversupply issues.