Is China’s Politburo spoiling for a showdown with America? – Telegraph

Posted by Matt in March 14th, 2010 | no comment

Published in China, 1920s, 1980s, Beijing University, Bonds, Case Professor, China Economy, China S Economy, Credibility, Dysfunctional, Gdp, Global Gdp, Indictment, Local Governments, Margins, Michael Pettis, Modern History, Politburo, Professor Victor, Realities, Shuh, Telegraph, Trillion, Wafer, Yuan

Michael Pettis from Beijing University argues that China’s reserves of $2.4 trillion – arguably $3 trillion – are a sign of weakness, not strength. Only twice before in modern history has a country has amassed such a stash equal 5pc to 6pc of global GDP: the US in the 1920s, and Japan in the 1980s. [...]

Michael Lewis’s ‘Big Short’ – Investors Foresaw Meltdown – Review – NYTimes.com

Posted by Matt in March 14th, 2010 | 1 comment

Published in Financial, American Housing, American Taxpayers, Billions Of Dollars, Crazy Man, Creditworthiness, Derivatives, Economists, Financial Executives, Fortune, Global Financial Crisis, Housing Bubble, Insanity, Losses, Mathematical Models, Michael Lewis, Money Machine, Recession, Trillion, Wall Street, Wall Street Firms

The global financial crisis of 2008, which economists estimate could result in several trillion dollars of losses and which has already cost American taxpayers billions of dollars in government bailouts, was triggered not by war or recession but by a crazy, man-made money machine, built on flawed mathematical models that most financial executives did not [...]

Nine Shocking New Predictions for 2010-2012

Posted by Matt in March 3rd, 2010 | 1 comment

Published in Favorites, Forecasts, All Time Highs, Bond Prices, Budget Deficit, Commodities, Dollar Index, Double Dip Recession, Economy, Enormous Implications, Federal Deficits, Fortunes, Global Collapse, Global Investors, Gold, Martin D Weiss, Martin Weiss, Massive Wealth, Ounce, Shock Waves, Sovereign Debt, Specter, Stocks, Tension, Trillion, Turmoil, Waves Of Fear, Wealth Shift, Zigzag Pattern

Prediction #1: Starting this year, most U.S. stocks are likely to fall in a zigzag pattern for nearly three long years!
Prediction #2: Gold will skyrocket far higher than $2,000 per ounce by the end of 2011.
Prediction #3: The U.S. Dollar Index will begin to sink in 2010 and will not hit bottom until early 2012.
Prediction [...]

Fair Game – Who Will Rein In Those Credit Default Swaps? – NYTimes.com

Posted by Matt in February 27th, 2010 | no comment

Published in Financial, Bank For International Settlements, Congressional Reform, Credit Default Swaps, CreditDefaultSwaps, Derivatives, Face Value, Fair Game, Financial Crisis, Loopholes, Nytimes, Second Quarter, Trillion

Congressional “reform” plans for credit default swaps are full of loopholes, guaranteeing that another derivatives-fueled financial crisis awaits us. According to the Bank for International Settlements, credit default swaps with a face value of $36 trillion were outstanding in the second quarter of 2009, the most recent figures available.
Fair Game – Who Will Rein [...]

The Building Bubble in China – BusinessWeek

Posted by Matt in February 20th, 2010 | no comment

Published in China, Economy, Asset Investment, beijing, Businessweek, Cb Richard Ellis, Cbre, China World, Chinese Banks, Empty Buildings, Encouragement, Hedge Fund, James Chanos, Kynikos Associates, Mainland, Skyscrapers, Stimulus, Tallest Building, Tower 3, Trillion, Vacancy Rate, World Tower

Much of China’s stimulus money was spent on skyscrapers, spurring fears of a real estate bust
Much of the $1.4 trillion in loans made by Chinese banks last year—with considerable encouragement from officials aiming to boost growth—was spent on skyscrapers and other commercial property. Now empty buildings are sprouting across the mainland. Beijing had an office [...]

Commercial Real Estate’s Coming $1.4 Trillion Crisis

Posted by Matt in February 12th, 2010 | 1 comment

Published in Economy, Financial, Alarm Bell, Commercial Loans, Commercial Real Estate, Commerical Real Estate, Commerical Real Estate Crisis, Congressional Oversight, Financial Crisis, Oversight Panel, Real Estate Loans, Small Businesses, Trillion

In a report released Thursday, the Congressional Oversight Panel sounded the alarm bell about a potential crisis involving $1.4 trillion in commercial real estate loans that will come due between now and 2014. The panel warns that the “financial crisis will not end” because of the “potential impact that breakdown in those markets could have [...]

Biggest Bubble in History Is Growing Every Day: William Pesek – BusinessWeek

Posted by Matt in February 4th, 2010 | no comment

Published in China, Bubbles, Businessweek, China, Currency Reserves, Gross Domestic Product, History Day, Norway, Peep, Real Estate, Stocks, Trillion, William Pesek

Real estate, stocks, credit. China sure has its share of bubbles. Oddly, little attention is paid to the biggest one of all.
China’s currency reserves grew by more than the gross domestic product of Norway in 2009. Its $2.4 trillion of reserves is a bubble all its own, one growing before our eyes with nary a [...]

Europe Debt on Rise; Greece Scrambles to Lower Deficit – TIME

Posted by Matt in February 2nd, 2010 | no comment

Published in Economy, Europe, Balanced Budgets, Budget, Club Europe, Fiscal Year, Governments, Greece, Jaws, Obama, Tight Times, Time President, Trillion

President Obama may have left jaws hanging with his proposed $3.8 trillion budget for the fiscal year 2011 — which forecasts a stunning $1.6 trillion deficit — but he’s hardly the only member of the “spend now, pay later” club. Across Europe, governments have gotten so used to embracing debt during economically tight times such [...]

How a Chinese Real Estate Bust Could Hurt the U.S. – DailyFinance

Posted by Matt in January 29th, 2010 | no comment

Published in China, Economy, Financial, Banks, Bubble, Bust, China, Chunk, Economic Contraction, Gdp, Interest Payments, Interest Rates, Lead, Money, National Debt, People, Real Estate, Trillion

Nevertheless, if people who borrowed money could not pay it back, China might need to scramble to raise cash to keep its banks above water. In that case, it might sell a chunk of its $2.2 trillion in U.S. debt — which would likely drive up interest rates in the U.S.
How so? Such selling [...]

Is the China bubble about to burst? – upiasia.com

Posted by Matt in January 29th, 2010 | no comment

Published in China, Economy, Banks, Bubble, China, Economists, Financial Health, Foreign Direct Investment, Lent, Long Time, River Of Money, S Real Estate, Stimulus Package, Stock Market Crash, Stock Markets, Tons Of Money, Trillion

Why are so many economists and brokers forecasting China’s internal implosion? Simply because they are reading about China’s US$580 billion stimulus package, the US$1.4 trillion lent by banks to the rich and powerful in China and the US$80 billion in foreign direct investment received in 2009. These are huge amounts of money that cannot be [...]