China May Be the World Hero In This Crisis
By Daniel at 25 October, 2008, 11:44 pm
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Paul J. Vigna writes:
The U.S. government, despite a massive support operation that’s largely merged the balance sheets of the banking system with the Federal Reserve, lacks the resources to solve the credit crisis, Sempra Metals economist John Kemp writes, as relayed by FT’s Alphaville. “The scale of the rescue operation will strain the Fed’s and the Treasury’s resources to the limit, and beyond,” he writes. In fact, he says, there’s only one country that does have the resources: China. “The only country with sufficient free resources to recapitalize the US banking system is China … China’s support is crucial.’
The FDIC may be interested in quickly settling the Wachovia flap, but not for the reasons most think, Yves Smith writes at naked capitalism. “It may also have been to keep pressure high to wrap up a deal before anyone could take too hard a look at the supposed prize,” Smith says. “Wachovia is looking less desirable than it once did, now that both sides have dug deeper as a result of the negotiation process, further complicating achieving a quick resolution.”
http://blogs.wsj.com/marketbeat/2008/10/09/china-the-only-hope/trackback/
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