Chinese banks told to stop loaning money to American banks / **UPDATED**
For the "yeah we're screwed" files: "Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday." China banks told to halt lending to US banks, South China Morning Post via Reuters (Thanks JDP). UPDATE: China denies the report. (thanks, Ari Schwartz)
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... then we otter stop 'lending' them our junk to recycle into more 'junk' they, in turn, sell back to us.
..Or stop spending 500 billion on a fake "war on terror"
Yep. The Chinese understand Capitalism. I guess they studied Marx.
Now all you need is China to start turning out Superdollars... and voila you got some serious financial difficulty.
Acting like self-interested economic actors! Those commie rats!
Sounds suspiciously like a Stephen Coonts novel I just read....
officially denied by China. Quick - go buy plasma TV's while you still have credit!
See reuters article:
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSHA17536520080925
Let's see, China holds most of the U.S.'s debt, right?
How about this scenario:
China: Ok, we're moving into Taiwan now.
U.S.: Oh, no you don't.
China: Ok, then, we'll call in our markers and collapse your economy.
U.S.: Nevermind...
"China: Ok, then, we'll call in our markers and collapse your economy."
The main thing holding up the Chinese economy (and therefore the government) is investment by foreign companies and the sale of good to foreign countries. The government of China isn't stupid enough to commit suicide by crashing any foreign economy - especially its biggest trading partner.
This has already been soundly denied by those same regulators. (Check the updated Reuters post.)
@9
True... but they dont' have to pull the whole rug either. And as the US economy shrinks relative to the world's growth, that status may change as well.
i'm going to bed, wake me after the pocky'lips, o.k.?
Did I just smell something hit the fan?
The more a bunch of people around me seem to think stuff is going downhill the more I think those folks know more than you and planned this. Good luck proving that one. And I grew up past 2 or 3 economic crunches, black Fridays, whatever. I don't think this is the big one, just a fancy way to finance that war we've been having.
comforting... but what if you are wrong?
Maybe it has being denied, but it makes sense to me.
They (politicians) are just shaking you out of your stock holdings at a cheap price.
It is definitely about financing their Middle Eastern wars.
Not about your health care - your politicians said that "socialized" medicine would bankrupt the country.
It now seems that private health insurance (AIG) has gone bankrupt...and needs a bail-out...but still no universal single-payer health care... "too expensive"...yeah right.
As to China, we are all in this together and the Freddy Mac/Fannie Mae bail-out was for the Chinese holders of their Bonds and Preferreds (shares)...so China has been taken care of , but you have to do some research to know it.
"If you owe the bank $100, the bank owns you; if you owe the bank $100 million, you own the bank."
Loans are one thing (nice), but when the shit really hits the fan they'll stop buying (bonds, securities). Then the world is going to feel the hard, horrible crash.