L&L Energy, Inc. LLEN

RE: Confusion

[barsolid]

Patience.  Too much fraud and corruption in China.  It needs to be cleaned out a little by the new regime coming in.  They also free'd up coal prices inchina and they are down some.  Even though the numbers show 7% they are not really accurate and the financial system is so screwed up that the money can't get down to the real SMEs (Small and Medium enterprises, study up on them) that need the credit.  In some ways not that different than the U.S. which is really bizarre.  The big corrupt money can get credit but doesn't use it for anything that helps anyone and the people and companies that could do something are blocked out by too much government and corruption.  Odd world we now live in.  Also the provinces and municipalities are broke from investing in corrupt real estate schemes (again, like the U.S., really weird).  In order for china to stimulate they have to completely reform the financial sector and allow money to go where corruption does not rule.  I do believe that this will happen but it is only a maybe.  If it does then the PRC will get another lease on the Mandate from Heaven and continue to rule, but if they fail to reform then the money will continue to go to corrupt and inefficient SOEs which means that the regime will get richer, but will also lose its legitimacy.  Obviously this will take time, either way, but don't be surprised if the PRC doesnot reform if the level of social unrest climbs quite quickly. 

  Exactly how this all relates to Llen is hard to tell.  One big aspect in its favor is the line of credit from the Big Four Bank (Sorry, I forgot which one at this moment).  that means that Llen is on the inside in this game and doesn't have to go into the shadow markets to get credit.  Exactly how Dr. Lee managed to get that done is a story to be told (don't ask, don't tell) but it does show some real provincial support.  Just hang in there.  Patience and at this price what else is there to do?.  JMHO