Posted on 11/19/2007 5:32:55 AM PST by Brilliant
Sept TIC is out. ChiComs net -$17B LT Tres.
UK: Net +$71B LT Tres
yitbos
http://www.treas.gov/tic/snetusq.txt
yitbos
How ridiculous the title is.
It’s not an investing frenzy, it’s a speculation frenzy.
The Chinese stock and real estate markets are both goiong hyper parabolic, straight up.
We know already how these end......badly. The new Chinese investors who are taking on extreme debt to make margin bets on “can’t lose investments” are going to be quite shocked when their vertical up turns into a waterfall. This shock will turn into a total rout. Just my opinion.
Why is it that no one mentions how great the economy was in the late 1920’s? Unemployment was around one percent and inflation was close to zero. Hoover may have thrown out the bathwater, but who threw out a couple of healthy babies with it.
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I finally found a confirmation of WSJ buried at FT:
China warns on illegal capital flow
~snip~
"The government’s focus on illegal banking operations comes at a time when many companies are looking for help after being turned down for loans from their regular banks. Chinese banks have been told by the central bank that their total loans must remain at late-October levels until the end of the year and they are not allowed to lend to real estate projects or polluting or energy-intensive industries.
The government has issued similar directives to Chinese banks to halt or slow fourth-quarter lending in each of the last three years.
But bankers and analysts say that with inflation at the highest level in a decade, Beijing is resolved to punish banks if they do not comply and for the first time has issued similar directives to locally incorporated foreign banks.
One senior foreign banker said officials had “escalated the robustness of their guidance” in phone calls last week to foreign banks in which regulators threatened that they would force them to buy low-yielding “special” bonds if they did not meet their lending quotas."
yitbos
The implied use of force always exists there. I did not realize you could see foreign ownership of US Treasureies. Interesting, the logic that must be behind the BOE, buying that much in US Govt bonds. Some sort of hedge, guess they don’t need a repeat of 93?
Somebody knows sumpin'. I think Brits know Sterling is not going to stay above historic levels. Those were LT bonds.
yitbos
The absence of rule of law always exists there.
Mugabe grabs platinum and diamond mines.
yitbos
Underground banking in China, either make you rich, or you meet the firing squad? Maybe you get lucky, and go to some labor camp, and are forced to dance to old Michael Jackson tunes. I don’t mind dancing, but the MJ tunes would make me beg for the firing squad.
The brits probably realize that in their case, gold will not be a hedge, since it has way outpaced the dollar decline. So, as I’ve suspected, the US will be the only safe place to run to, when the today’s favorites start to collapse.
U.S. Treasuries
30-Year 5.000 05/15/2037 109-02+ / 4.44 0-30+ / -.055 01:53
30 yrs at 4.44%. Someone wants those babies pretty bad.
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