China's scary financial system

Just when China faces its financial meltdown is unknowable, but without draconian action by the central authorities it surely will as is evident from this explanation of their rapidly expanding credit system looking a lot like what happened in the US during the runaway housing boom of the last decade.  The bottom line is regulators cannot control the credit expansion as fast as financial entrepreneurs find new ways to create more.  There is this difference:  during the US massive credit expansion the government while democrats were in control, were complicit in making the bubble happen by enabling Fannie and Freddie Macs to underwrite risky mortgages in the name of "social justice". In China it appears the central government in the control of the Communists are trying to reign inn credit expansion but simply cannot keep up with the wily entrepreneurs who are enjoying the current fruits of their bubble.  Hard to say where all this leads as the commies are able to operate free of any pesky media and in the end can impose "solutions" unavailable in our more transparent and legally defined system.  One such "solution" might be to send the entrepreneurs off to the gulag, never to be heard from again.  Could happen.