Not just Congress. Muffler shop owners understand econ better than most of the public as well. Simple concepts like supply and demand are beyond the grasp of the average person. For example, look at that Gas Out idea, where people wouldn't buy gas for a day. Many people thought that delaying a purchase for a day would somehow bring the oil companies to their knees.
"The China Price" - The best business article I have seen in years.
- Thread starter SouthAmerica
- Start date
Not just Congress. Muffler shop owners understand econ better than most of the public as well. Simple concepts like supply and demand are beyond the grasp of the average person. For example, look at that Gas Out idea, where people wouldn't buy gas for a day. Many people thought that delaying a purchase for a day would somehow bring the oil companies to their knees.
China becoming big power as seen here: http://www.reuters.com/article/marketsNews/idINN0720270420080507?rpc=44
âChina's currency has strengthened against the dollar, but it needs to rise further and faster to help with the global adjustment of a weaker greenback, International Monetary Fund chief Dominique Strauss-Kahn said on Wednesday.â
âChina's currency has strengthened against the dollar, but it needs to rise further and faster to help with the global adjustment of a weaker greenback, International Monetary Fund chief Dominique Strauss-Kahn said on Wednesday.â
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September 16, 2008
SouthAmerica: Since the US financial system is in complete turmoil right now and considering that the US financial market is going to continue its implosion process in the near future.
If I were the manager of the Chinaâs Sovereign Investment Fund I would make a bid right now to buy Goldman Sachs for its current market cap value $ 53 billion dollars.
The Chinese government is holding almost $ 1.4 trillion dollars in confetti at least by investing $ 53 billion dollars in Goldman Sachs the Chinese government would be getting something of value for their confetti.
The Chinese government would be acquiring the crown jewel of the US financial system.
GOLDMAN SACHS GRP (NYSE: GS)
Last Trade:135.50
Trade Time:Sep 15
Market Cap:53.36B
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Just a thought: To give an incentive to American regulators for them to approve the GS deal as a gesture of goodwill and part of the agreement the Chinese Sovereign Investment fund also make an offer to save AIG and buy it for $ 15 billion dollars immediately a price that is a 16 percent above AIGâs current market cap.
Keep in mind that AIG market cap might evaporate and become close to zero in the near future when that company files for bankruptcy.
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September 16, 2008
SouthAmerica: Since the US financial system is in complete turmoil right now and considering that the US financial market is going to continue its implosion process in the near future.
If I were the manager of the Chinaâs Sovereign Investment Fund I would make a bid right now to buy Goldman Sachs for its current market cap value $ 53 billion dollars.
The Chinese government is holding almost $ 1.4 trillion dollars in confetti at least by investing $ 53 billion dollars in Goldman Sachs the Chinese government would be getting something of value for their confetti.
The Chinese government would be acquiring the crown jewel of the US financial system.
GOLDMAN SACHS GRP (NYSE: GS)
Last Trade:135.50
Trade Time:Sep 15
Market Cap:53.36B
********
Just a thought: To give an incentive to American regulators for them to approve the GS deal as a gesture of goodwill and part of the agreement the Chinese Sovereign Investment fund also make an offer to save AIG and buy it for $ 15 billion dollars immediately a price that is a 16 percent above AIGâs current market cap.
Keep in mind that AIG market cap might evaporate and become close to zero in the near future when that company files for bankruptcy.
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September 16, 2008
SouthAmerica: Since the Chinese government has deep pockets right now and is holding more than $ 1.4 trillion in US dollar foreign exchange reserves:
The Chinaâs Sovereign Investment Fund can make an offer to buy Goldman Sachs for about $ 50 billion dollars.
And AIG they can offer $ 5 billion dollars as part of a package deal.
Buying both firms for a total of $55 billion dollars might be a good deal on the long run.
The Chinese could not buy right now more prestige and clout for just $55 billion dollars than picking up the crown jewel of the US Financial system and its biggest insurance company.
Note: This is one way to put your over supply of confetti to a good use.
September 16, 2008
SouthAmerica: Since the Chinese government has deep pockets right now and is holding more than $ 1.4 trillion in US dollar foreign exchange reserves:
The Chinaâs Sovereign Investment Fund can make an offer to buy Goldman Sachs for about $ 50 billion dollars.
And AIG they can offer $ 5 billion dollars as part of a package deal.
Buying both firms for a total of $55 billion dollars might be a good deal on the long run.
The Chinese could not buy right now more prestige and clout for just $55 billion dollars than picking up the crown jewel of the US Financial system and its biggest insurance company.
Note: This is one way to put your over supply of confetti to a good use.
May those who condemned protectionism burn in hell.
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GermanTrader: May those who condemned protectionism burn in hell.
*******
September 16, 2008
SouthAmerica: I am just giving a dosage of their own medicine of free market economics to those people who gave me a hard time when I called for the Brazilian government to buy the 30 percent of common stock of Petrobras that is on the hands of foreigners right now.
My article was published 2 months ago on Brazzil magazine and today there are people that still discussing that article and trying to make a case for free market economics. We are approaching 300 comments following that article because some people want to make the case against the economic development plan that I proposed on that article.
In the above case if the China Sovereign Investment fund can control Goldman Sachs and AIG â that would give them unbelievable power inside the US economy.
That $55 billion dollars investment would have attached to it an immense amount of political and economic power inside the US economic system.
If the China Investment Fund can swing that deal that would be a real bargain in the long term mainly now that other financial institutions have gone out of business and the market will be less crowded in the future.
The Chinese already keeps the US government afloat and supports the US government deficit spending â and now the Chinese has the chance of also getting control of the soul of the US private financial market.
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GermanTrader: May those who condemned protectionism burn in hell.
*******
September 16, 2008
SouthAmerica: I am just giving a dosage of their own medicine of free market economics to those people who gave me a hard time when I called for the Brazilian government to buy the 30 percent of common stock of Petrobras that is on the hands of foreigners right now.
My article was published 2 months ago on Brazzil magazine and today there are people that still discussing that article and trying to make a case for free market economics. We are approaching 300 comments following that article because some people want to make the case against the economic development plan that I proposed on that article.
In the above case if the China Sovereign Investment fund can control Goldman Sachs and AIG â that would give them unbelievable power inside the US economy.
That $55 billion dollars investment would have attached to it an immense amount of political and economic power inside the US economic system.
If the China Investment Fund can swing that deal that would be a real bargain in the long term mainly now that other financial institutions have gone out of business and the market will be less crowded in the future.
The Chinese already keeps the US government afloat and supports the US government deficit spending â and now the Chinese has the chance of also getting control of the soul of the US private financial market.
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September 18, 2008
SouthAmerica: I was watching CNBC television this morning and one of the things that they mentioned was the situation at Morgan Stanley and their panic fire-sale.
At this point maybe Citi Group can merge with Morgan Stanley before MS end up just like Lehman Brothers.
They mentioned on the program that Morgan Stanley was also talking with the China Sovereign Fund or some other bank owned by the Chinese government.
If I was making the investment decisions in China I would not invest in Morgan Stanley, but I would be prepared to move very quickly and pick up Goldman Sachs for a song in this collapsing financial market.
Why should the Chinese invest in Morgan Stanley when they can get instead the crown jewel of Wall Street?
In this melting financial market the Chinese might be able to buy Goldman Sachs for about $ 25 billion dollars or even less.
If I were the Chinese I would concentrate all my efforts right now in making an offer to savage Goldman Sachs at the right time and pick up the pieces of that company.
If there is any value left on these Wall Street investment banking houses the Chinese probably would find that value in Goldman Sachs.
The global prestige and clout attached to Goldman Sachs should be worth the effort for the Chinese to take a chance in buying that crown jewel of Wall Street.
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September 18, 2008
SouthAmerica: I was watching CNBC television this morning and one of the things that they mentioned was the situation at Morgan Stanley and their panic fire-sale.
At this point maybe Citi Group can merge with Morgan Stanley before MS end up just like Lehman Brothers.
They mentioned on the program that Morgan Stanley was also talking with the China Sovereign Fund or some other bank owned by the Chinese government.
If I was making the investment decisions in China I would not invest in Morgan Stanley, but I would be prepared to move very quickly and pick up Goldman Sachs for a song in this collapsing financial market.
Why should the Chinese invest in Morgan Stanley when they can get instead the crown jewel of Wall Street?
In this melting financial market the Chinese might be able to buy Goldman Sachs for about $ 25 billion dollars or even less.
If I were the Chinese I would concentrate all my efforts right now in making an offer to savage Goldman Sachs at the right time and pick up the pieces of that company.
If there is any value left on these Wall Street investment banking houses the Chinese probably would find that value in Goldman Sachs.
The global prestige and clout attached to Goldman Sachs should be worth the effort for the Chinese to take a chance in buying that crown jewel of Wall Street.
.
.
October 24, 2008
SouthAmerica: I was watching CNBC early in the morning on October 22, 2008 when they interviewed economist Marc Faber. He said that he had just returned from a trip to China. He also said that the Chinese learned with the United States how to fudge all the government statistics â and the people he met in China told him that the real economic growth rate in China today is closer to 5 percent, and not the reported figure of 9 percent.
And some Americans expect that demand from China is going to help them to come out of the current U.S. deepening recession.
The 5 percent actual economic growth rate in China is going to affect the Brazilian economy as well.
*****
âChina Q3 growth slows to 9.0 pct, outlook gloomyâ
By Jason Subler and Eadie Chen
Reuters - Mon Oct 20, 2008
BEIJING, Oct 20 (Reuters) - China's economic growth slowed to 9.0 percent in the third quarter, dragged down by the global credit crisis and a weak property sector, leaving the economy on course for its first year of single-digit expansion since 2002.
The fall in annual gross domestic product growth from 10.1 percent in the second quarter, confirmed that China cannot decouple from struggling world economy and reinforced expectations that the government will soon further ease monetary and fiscal policy.
The world's fourth-largest economy grew at an annual rate of 9.9 percent in the first nine months, well down from 11.9 percent in all of 2007, the National Bureau of Statistics (NBS) said on Mondayâ¦.
Source: http://www.reuters.com/article/marketsNews/idINPEK31241520081020?rpc=44
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October 24, 2008
SouthAmerica: I was watching CNBC early in the morning on October 22, 2008 when they interviewed economist Marc Faber. He said that he had just returned from a trip to China. He also said that the Chinese learned with the United States how to fudge all the government statistics â and the people he met in China told him that the real economic growth rate in China today is closer to 5 percent, and not the reported figure of 9 percent.
And some Americans expect that demand from China is going to help them to come out of the current U.S. deepening recession.
The 5 percent actual economic growth rate in China is going to affect the Brazilian economy as well.
*****
âChina Q3 growth slows to 9.0 pct, outlook gloomyâ
By Jason Subler and Eadie Chen
Reuters - Mon Oct 20, 2008
BEIJING, Oct 20 (Reuters) - China's economic growth slowed to 9.0 percent in the third quarter, dragged down by the global credit crisis and a weak property sector, leaving the economy on course for its first year of single-digit expansion since 2002.
The fall in annual gross domestic product growth from 10.1 percent in the second quarter, confirmed that China cannot decouple from struggling world economy and reinforced expectations that the government will soon further ease monetary and fiscal policy.
The world's fourth-largest economy grew at an annual rate of 9.9 percent in the first nine months, well down from 11.9 percent in all of 2007, the National Bureau of Statistics (NBS) said on Mondayâ¦.
Source: http://www.reuters.com/article/marketsNews/idINPEK31241520081020?rpc=44
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November 10, 2008
SouthAmerica: In 2007 Chinaâs GDP was growing at 11.8 percent per year.
Right now Chinaâs GDP is growing at 5 percent per year and probably with the potential to decline even further if the global economy continues to implode.
Thatâs why the Chinese government announced today an economic stimulus package of US$ 586 billion â about 20 percent of Chinaâs GDP. (It signals a sense of Panic more than anything else.)
The size of the economic stimulus package in proportion to the size of the Chinese economy is sending a strong signal that the Chinese economy is shrinking fast than most people has realized.
.
November 10, 2008
SouthAmerica: In 2007 Chinaâs GDP was growing at 11.8 percent per year.
Right now Chinaâs GDP is growing at 5 percent per year and probably with the potential to decline even further if the global economy continues to implode.
Thatâs why the Chinese government announced today an economic stimulus package of US$ 586 billion â about 20 percent of Chinaâs GDP. (It signals a sense of Panic more than anything else.)
The size of the economic stimulus package in proportion to the size of the Chinese economy is sending a strong signal that the Chinese economy is shrinking fast than most people has realized.
.
