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China seeks to create their own Goldman Sachs

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Imagine how exciting it will be to have their own team of gamblers with even more government sponsorship and government money. The financial gambles and eventually losses will make Wall Street's losses look like a rounding error.

The current regime in China has consistently proven themselves to be experts at cooking the books so there's no question this will lead to a spectacular crash at one point in the future. Nothing fuels an ugly banking crash quite like a government open wallet. It's bad enough in the US system which is limited to deep government ties, but making those ties deeper is asking for trouble.

Fun times ahead in China if they follow through with this plan.

China is rolling out sweeping brokerage reforms to nurture future global investment banks that officials hope could eventually compete with the likes of Goldman Sachs and Morgan Stanley , a regulatory document showed.

The China Securities Regulatory Commission wants to allow domestic brokerages, which now get most of their money from trading stocks and underwriting new securities, to expand in futures and derivatives, asset management, private banking and private equity, according to a commission document distributed to securities firms earlier in the month.

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