The Panic of 1857

Until now, the Chinese government has been widely applauded for its deftness in managing economic matters. For instance, its massive stimulus program launched in late 2008 helped the Chinese economy weather the global financial crisis.

It also saddled the economy with debt, a property bubble and wasteful projects throughout the country. As part of a strategy to help the companies unwind the debts they had taken on in that push, policy makers encouraged stock investing.
"Chinese Government Strug...