Very Novel way to recover the economy

Interesting articales:
 
http://www.economist.com/daily/news/displaystory.cfm?story_id=14161839&fsrc=nwl

Lending binge

Aug 6th 2009
From the Economist Intelligence Unit ViewsWire

Astonishingly rapid lending growth appears to have rescued the Chinese economy but at what cost?

 
China's economy has experienced a dramatic recovery over the past six months. It now looks highly likely that GDP growth will meet the government's 8% target for 2009—a target which seemed overly optimistic just a few months ago. Although private demand has held up better than expected, the rapid pick-up in the economy has only been possible owing to a massive increase in state-mandated bank lending. However, the huge increase in bank lending has also sparked concerns over the emergence of asset-price bubbles, and over the risk of a sharp rise in non-performing loans (NPLs) that could lead to a banking crisis.