July 14 (Bloomberg) -- Bloomberg's Stephen Engle reports from Loudi, China, on the construction of infrastructure financed by local government debt.
Loudi is paying for the building of a 30,000-seat stadium, bulb-shaped gymnasium and swimming complex with 1.2 billion yuan ($185 million) in bonds, guaranteed by land valued at $1.5 million an acre. That’s about the same as prices in Winnetka, a Chicago suburb where the average household earns more than $250,000 a year. In Loudi, people take home $2,323 annually. (Source: Bloomberg)