Aliza with the long dark hair ([info]aliza250) wrote,
@ 2008-09-25 22:29:00
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Current mood: worried

The beginning of the (financial) end?
Is this the beginning of the meltdown? http://www.reuters.com/article/newsOne/idUSPEK16693720080925 -- Chinese banks told to stop lending to US banks.

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Added 11:27 Pacific time:

This appears to be just a rumor, denied by the Chinese central bank, dealing with a bank run of its own

http://www.marketwatch.com/news/story/china-bank-regulator-denies-report/story.aspx?guid={1F3681AC-2953-4963-99EC-57BECF1E9291}&dist=msr_3


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[info]holzman
2008-09-26 06:22 am UTC (link)
The beginning of the meltdown was when the sub-prime mortage market imploded. The worse is yet to come. Remember, China has a whole lot of dollars it's invested in. If it sells them all off, the dollar plummets even further.

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[info]mhnicholson
2008-09-26 07:03 am UTC (link)
I'm not convinced a weak dollar is so terrible a result. In the end, our economy will live or die based on whether we start manufacturing again. That in turn, is *helped* by a weak dollar. It just means we'll get outbid for the fancy premium good and such for a while.

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[info]aliza250
2008-09-26 06:01 pm UTC (link)
When "fancy premium imported goods" include oil and raw materials, yeah, I worry. (And lets not even talk about the cheap Chinese goods at WalMart that feature so strongly in the average family's budget...) Our economy isn't based on self-sufficiency...

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[info]selki
2008-09-26 09:40 am UTC (link)
It seems like a bad sign to me, even if just a rumor for now.

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[info]cz_unit
2008-09-26 11:13 am UTC (link)
This made me think "and what would make life even more screwed up?". How about if tomorrow China occupies Taiwan? Their threat could be "we'll sell all of your dollars *now*"

CZ

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[info]realinterrobang
2008-09-26 02:56 pm UTC (link)
I'd be more worried about the significance of the collapse of Washington Mutual. Of course, if the laissez-faire capitalist types get their way and siphon $700B out of the US Treasury, the pain is really not going to go away...

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