China Cities Value Land at Winnetka Prices With Bonds Seen Toxic

``Local governments set up more than 10,000 so-called financing vehicles in the past decade to get around laws prohibiting them from taking direct loans. One third of them don't have cash flow to service their loans, China's banking regulator says. The similarities with special purpose vehicles in the U.S. hiding toxic repackaged mortgages from banks' balance sheets are increasing. ''