Comments on: What does China think about the bailout?

By: tdaxp

tdaxp — Thu, 25 Sep 2008 19:10:49 +0000

The China Expat (before moving on to an endorsement of Ron Paul and a bizarre island analogy) notes that China is attempting to stop a run on the treasury [1,2]

[1] http://www.thechinaexpat.com/china-to-america-no-more-money-for-us/
[2] http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anZHfo6tQi60

By: Cappn

Cappn — Thu, 25 Sep 2008 17:21:07 +0000

I had no idea our banks, AMERICAN BANKS, that we depend on, depend on the lending of Chinese banks. Who are we again? Home of the brave? Perphaps too brave…

By: tdaxp

tdaxp — Thu, 25 Sep 2008 16:48:41 +0000

Disturbing news [1]:

SHANGHAI, Sept 25 (Reuters) – Some Chinese banks have cut lending to foreign banks in China’s interbank money market because of the global financial crisis, but trade continues and foreign banks remain able to operate, traders said on Thursday.

Dealers at over half a dozen Chinese and foreign institutions, who declined to be named because of the sensitivity of the issue, said U.S. and some other foreign banks were finding it harder to borrow from the market.

A number of Chinese banks have temporarily stopped offering new lending to U.S. banks in yuan and other currencies, because of uncertainty about risk, three traders said. Similar caution in lending has been seen in markets around the world.

[1] http://www.reuters.com/article/governmentFilingsNews/idUSSHA34453320080925

By: ElamBend

ElamBend — Tue, 23 Sep 2008 22:22:38 +0000

I would guess that China does not like the plan as currently proposed, particularly for the inflationary effect it will have. However, they do not want the whole show to stop all together, either. I think they will reserve any real harsh comments for the red-line.

It’s fascinating, but because of our alignment of interests, China is a de facto ally, that we must work closely with.

By: Steve French

Steve French — Tue, 23 Sep 2008 19:25:52 +0000

China is a good player to watch. I fear we’re falling into McCardle’s law of “We have to do something!”
“Well, this is is something”
“We have to do this!”

700 billion and counting. How did it all come to this…