Quote:
Originally Posted by Supermouse
Heard on the news today (swedish):
China has soo much money linked to the banks and goverment in USA. If China decides too use the money elsewhere = USA will for sure go bankrupt.
I guess the donīt want that?
PEACE!  |
Not to worry. People have pointed out that Paulson has made multiple (70) trips to China. One of the interesting points about the bailout out is that it would allow foreign investors to potentially get their money back. You may recall that there was talk about limiting the bailout to assets owned by Americans as of September 20. Paulson scrapped this. As Mike Whitney pointed out (
http://www.informationclearinghouse....ticle20915.htm), an asset held by the Bank of Shanghai, can be transfered to the Bank of Shanghai in Los Angeles and the Feds (meaning you and me) can buy it back. Since Paulson has been given full discretion as to how these funds can be spent, he may be inclined (to keep the Chinese satisfied) to pay full price for this particular loan, even if the street value of it, given the current climate, is 40% of value.
This might explain why Pelosi and the gang were so insistent that the bill be passed. If it hadn't, the US might have been in the same position as Iceland.