Comments on: Chinese Banks To Stop Loaning to U.S. Banks? (Updated)

By: Steve Verdon

Steve Verdon — Fri, 26 Sep 2008 16:29:47 +0000

You know it is at moments like this that I think the Chinese (leadership) are just plain old vanilla stupid at times. Seriously, they think that their economy would be spared if a massive world wide credit crunch ensues? That they can just blast off into outerspace and be their own world? What?

By: Stormy Dragon

Stormy Dragon — Fri, 26 Sep 2008 04:06:21 +0000

How much of an effect this would have likely depends on how fungible debt is.

Presumably Chinese banks will still need to do something with the money and will lend it to someone other country besides the US. That will drive down the interest rates in those countries, leading other people moving money from there to the US in search of a better rate.

By: Web Smith

Web Smith — Fri, 26 Sep 2008 00:02:35 +0000

Something's fishy here. As American banks squeeze credit and manipulate the stock market to make our industries suffer, the Chinese join in even though they have over $1 trillion in Freddie and Fannie.

It makes you wonder which economic terrorist on Wall Street or from the halls of the Fed made the call to get them to help take over our treasury. Don't worry about the $1 trillion. Once we get our hands on the Treasury, we'll pay you back.

Time to start printing Treasury notes and use the interest to pay off the national debt. Let the Fed keep their notes.

http://ewebsmith.com/finance/RonPaulAnswers.html

By: Bystander

Bystander — Thu, 25 Sep 2008 21:23:05 +0000

They probably just need to money to bailout China's dairy industry.

LOL - what a great comment!

By: Michael

Michael — Thu, 25 Sep 2008 20:31:44 +0000

They probably just need to money to bailout China's dairy industry.

By: anjin-san

anjin-san — Thu, 25 Sep 2008 20:19:33 +0000

Perhaps McCain will rush to Beijing to deal with the situation...