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deMolay
Intermediate Crude
Joined: Sep 04, 2005
Posts: 907
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 Posted: Thu Sep 25, 2008 5:12 am Post subject: Chinese Banks Told To Halt Lending To US Banks |
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| This could be ominous news. [rul=http://www.reuters.com/article/marketsNews/idUSPEK16693720080925]link[/url] |
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seahorse
Expert
Joined: Oct 15, 2004
Posts: 2258
Location: Arkansas
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| Posted: Thu Sep 25, 2008 5:19 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| Nice find. I agree. There's no way this can be good. My question is whether its only temporary, meaning, until the US passes the bailout. If it extends indefinitely, not a good sign. |
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ohanian
Light Sweet Crude
Joined: Oct 17, 2004
Posts: 1148
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| Posted: Thu Sep 25, 2008 5:57 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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It's their money. They can decide how it should be used
Since when do we tell Chinaman how to spend his own money? |
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ReverseEngineer
Light Sweet Crude
Joined: Jul 16, 2008
Posts: 1741
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| Posted: Thu Sep 25, 2008 6:12 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| ohanian wrote: | | Since when do we tell Chinaman how to spend his own money? |
Since the Boxer Rebellion? Guess those days are over now.
Love this Biblical Prediction: "The Meek Shall Inherit the Earth."
Seeming more plausible al the time. The rich seem to be getting toasted rapidly here as the paper wealth goes up in flames.
Gotta love hearing this stuff from a huge critic of Religion in general.
Revers Engineer
Reverse Engineer |
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vtsnowedin
Intermediate Crude
Joined: Jul 11, 2008
Posts: 633
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| Posted: Thu Sep 25, 2008 6:14 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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 The Chinese have a big problem here. All the stuff we were going to buy from them for Christmas is already in the container on the ship. What happens to their booming industrial sector if by Thanksgiving the US is in a full depression and half that stuff just sits in Walmart unsold? There is 27000 former employees of investment banks that nolonger need a new laptop or PDA for the forseeable future and lots more layoffs where those came from.
If China shuts off our credit they will shoot themselves in the foot. Maybe its already to late but they must be scratching their heads trying to find a course that isn't a total disaster. |
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benzoil
Heavy Crude
Joined: Aug 26, 2005
Posts: 447
Location: Windy City No Longer
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| Posted: Thu Sep 25, 2008 6:18 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| vtsnowedin wrote: | | The Chinese have a big problem here. All the stuff we were going to buy from them for Christmas is already in the container on the ship. |
Actually, most of it is already here. Still, most Chinese manufacturing (that I've seen) is done on a cash up front basis - so at least they've already been paid. Whether or not that money is worth as much as they'd thought come December 25 is anyone's guess.
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ohanian
Light Sweet Crude
Joined: Oct 17, 2004
Posts: 1148
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| Posted: Thu Sep 25, 2008 6:22 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| vtsnowedin wrote: | | The Chinese have a big problem here. All the stuff we were going to buy from them for Christmas is already in the container on the ship. What happens to their booming industrial sector if by Thanksgiving the US is in a full depression and half that stuff just sits in Walmart unsold? There is 27000 former employees of investment banks that nolonger need a new laptop or PDA for the forseeable future and lots more layoffs where those came from. If China shuts off our credit they will shoot themselves in the foot. Maybe its already to late but they must be scratching their heads trying to find a course that isn't a total disaster. |
Only us Yanks believe that we are so Bloody important.
So what if USA collapse economically.
Only a mere 14% of China's economy is Export. Even if USA disappears into a financial Black Hole. China will only suffer a 14% set back at most!!! And that is the worse case scenario.
Don't believe me? Read this article for yourself. link |
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ReverseEngineer
Light Sweet Crude
Joined: Jul 16, 2008
Posts: 1741
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| Posted: Thu Sep 25, 2008 6:35 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| vtsnowedin wrote: | | The Chinese have a big problem here. All the stuff we were going to buy from them for Christmas is already in the container on the ship. What happens to their booming industrial sector if by Thanksgiving the US is in a full depression and half that stuff just sits in Walmart unsold? There is 27000 former employees of investment banks that nolonger need a new laptop or PDA for the forseeable future and lots more layoffs where those came from. If China shuts off our credit they will shoot themselves in the foot. Maybe its already to late but they must be scratching their heads trying to find a course that isn't a total disaster. |
Why on EARTH anyone would think the Chinese got a LOCK on this problem is beyond me. "Never a Borrower or a Lender be". It behooves nobody to lend to someone else in expectation of profit if that person cannot POSSIBLY pay back, but that is in fact what the Chinese did. They lent us the money, we spent it, its GONE.
The whole game falls apart as soon as expected growth doesn't happen anymore. Nobody can pay back interest when real growth fails to deliver. Unless you find a NEW source of wealth like a new continent to rape and pillage or a limited supply of oil to suck up out of the ground, the whole scheme is BOUND to fail. This is so obvious you could figure it out in 5th Grade.
Just cause Chinese are Inscrutable you think they can figure out this problem any better than the bozos in Washington? GET REAL! You all saw the problem here on Peak Oil, just you all cannot seem to grasp its happening so fast. Lotta Denial going on here. I think you all are just going to miss the discussion and speculation on WHEN TSWHTF. It already HIT the Fan. Its splattering all over the place.
Reverse Engineer |
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vtsnowedin
Intermediate Crude
Joined: Jul 11, 2008
Posts: 633
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| Posted: Thu Sep 25, 2008 6:54 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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 I would not want to overstate the importance of the USA to the Chinese. We are as big a costumer as we are, no more no less. As we have seen having just five percent of loans go bad can devalue all the loans in a portfolio, could exports droping from 14% to say 7% as a percentage of GDP trim the profit margin off the Chinese economy?
At any rate I expect the Chinese wanted exports to grow not decline. |
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mattduke
Light Sweet Crude
Joined: Oct 28, 2005
Posts: 1546
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| Posted: Thu Sep 25, 2008 7:45 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| The trade imbalance between China and the US is a total loss to China. They have nothing to show for all the products they have shipped to the US except irredeemable paper. When the arrangement ends, the Chinese will find themselves drowning in products to enjoy. |
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ROCKMAN
Intermediate Crude
Joined: May 27, 2008
Posts: 976
Location: TEXAS
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| Posted: Thu Sep 25, 2008 9:23 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| I have to wonder if the Chinese statements are motivated by efforts to support the bail out. And today the BoA announced they were "temporarially" suspending credite lines to McDonald franchises despite the fact they admit they have "absolutelty no concerns" over the viability of McD's. Why pick today to make that announce? Just coincidence? IMO neither press release completely passes the smell test. |
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seahorse2
Expert
Joined: Oct 18, 2004
Posts: 1966
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| Posted: Thu Sep 25, 2008 9:49 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| Rock, I agree. I also saw a report this morning that Bank of America was going to cut its line of credit with McDonalds due to the credit crisis. I guess, if we don't approve the bailout, we can't eat at McDonalds anymore. They are hitting below the belt now. |
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ROCKMAN
Intermediate Crude
Joined: May 27, 2008
Posts: 976
Location: TEXAS
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| Posted: Thu Sep 25, 2008 10:06 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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Sadly enough Seahorse, you and I both know that possibility can have a greater impact on the American collectivet than all the testamony being thown at Congress right now. It seems so transparent but maybe they figure those that see it for what it is will be shouted down by the ignorant massess.
"Ignorant Massess" ...damn...I'm really full of myself today I suppose. |
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Rubin_Flagg
Tar Sands
Joined: May 28, 2008
Posts: 60
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| Posted: Thu Sep 25, 2008 10:19 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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As bad as it is gong to get here....it is nothing compared to what will happen in China over the next year.
I've done business in China...you have no clue as to what your talking about. They are shitting their pants about this failure. I have a couple of messages that credit is freezing up there now. This is a global power/stock/economic failure soon to be a political revolution almost everywhere.
I watch the clowns in CNBS....what a joke. No one has a clue.
Its POWERDOWN baby! |
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3aidlillahi
Intermediate Crude
Joined: Mar 25, 2008
Posts: 890
Location: Alif Lam Mim
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| Posted: Thu Sep 25, 2008 10:27 am Post subject: Re: Chinese Banks Told To Halt Lending To US Banks |
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| Quote: | | "Ignorant Massess" ...damn...I'm really full of myself today I suppose. |
You've only been here a few months. Wait a year and you'll be calling them DSE's (DSE). You sound so polite and mature by calling them "ignorant masses" compared to everyone else here.
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Riches are not from abundance of worldly goods, but from a contented mind. |
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