This just ****in STUPID

[olevetonahill]

http://news.yahoo.com/fed-clears-chinas-first-us-bank-takeover-012927575.html

[Chuck Bao]

http://news.yahoo.com/fed-clears-chinas-first-us-bank-takeover-012927575.html

This is my wheelhouse and I humbly disagree. This could be the start to much bigger things but this investment is not worth commenting on other than a Chinese bank being allowed to buy the very, very small banking operations of 13 branches in California and New York from a Hong Kong bank.

I was a banking analyst for the leading Hong Kong brokerage firm way back in the mid 80s. Back then, the Bank of East Asia was generally considered to be one of the most prudent and well-managed banks in Hong Kong. They had a ridiculously low loan-to-deposit ratio and I suppose this sale is driven by the fact that they were terribly hurt by exposure to investments in the 2008 sub-prime market and subsequent global financial crisis. Their corporate culture was always more about using deposits to invest rather than lending. That used to be a good thing and now it is a very bad thing.

And, I know ICBC. They've been in Bangkok for 20+ years and they are not that aggressive.

The Chinese really don't need access to the US deposits to do what they are doing to the global securities markets. If they were to buy a big bank, it would be a reason to be really concerned.

[LiveLaughLove]

Well, I am probably opposed to this, beings it's China and all, and beings Chuck is ok with it, and since I rarely agree with him.

However, since I know less than diddly squat about it, I'll pull an Obama and vote "present" on it.

I might want to run for dog catcher some day and this thread isn't going to derail my plans, that's for sure.

[Chuck Bao]

Well, I am probably opposed to this, beings it's China and all, and beings Chuck is ok with it, and since I rarely agree with him.

However, since I know less than diddly squat about it, I'll pull an Obama and vote "present" on it.

I might want to run for dog catcher some day and this thread isn't going to derail my plans, that's for sure.

So in terms of value-added comments, you've got nothing, except that you tend to disagree with me. Okay, that's fine. You probably couldn't find a more distrustful poster about China's growing influence on global stock, bond, commodities prices on this board than me. This deal is not that. I'm really fine if you don't want to ever agree with me. I like and appreciate skeptics.

[KantoSooner]

Well, since you can access Citibank ATMs on the street in Beijing, we shouldn't be too terribly rattled to have a Chinese bank in the US. It's no biggie, folks.

[badger]

While this sounds good on paper (U.S. banks can enter the lucrative China market now!), remember when we opened ourselves to China for imports/exports? I think we've had a trade deficit with them from the beginning. I don't see how this can't be better for them here also.

[KantoSooner]

US banks have been in China for two decades.
Second, what is historic here is that China is moving some operations outside of China, into the US. Not only banks, but factories as well. This is far faster than the same move happened in the case of Japan. You may not remember, but in the 1970's and 1980's, the word was that our beloved USA was going to become a plantation servicing the Japanese juggernaut. Final analysis: it didn't turn out so scary.
What makes you believe that American owned and operating banks can not compete against Chinese owned and operated banks? Do they have special powers? We seem to do pretty well against Japanese, British, German, French, Russian, etc. banks. And they all own or partially own operations here.
China bends some rules to suit their interests, but so do we. By and large, the Chinese are playing by the rules. And, when they have increased 'skin in the game' here in the US it only provides additional motivation for them to support fair trade and an overall healthy world economy.

Next time you look for a fridge, check out Haier. Well made, very durable and legendary customer service.

[OULenexaman]

We give free egg roll with every new account.

[KantoSooner]

Peking Puppy! Fried Dog On A Stick!

Coming soon to a food court near you!

[olevetonahill]

Peking Puppy! Fried Dog On A Stick!

Coming soon to a food court near you!

Obama will be happy.

[OULenexaman]

We no charge for swipe fees.....instead you get Rangoon Rewards!!

[Curly Bill]

I welcome our new Asian Overlords.

[cleller]

While this sounds good on paper (U.S. banks can enter the lucrative China market now!), remember when we opened ourselves to China for imports/exports? I think we've had a trade deficit with them from the beginning. I don't see how this can't be better for them here also.

The Chinese are good at this game. They've had their thumb on the scale in every deal.

Their manipulation of the Yuan is incredible. Now every time they give a millimeter, we act like its a giant accomplishment.

[KantoSooner]

1. We got China back into the world economy without the advent of a major war. Victory points to US diplomats.

2. China coming back into the world economy has been worth about 3-4% points off the annual inflation rate since the mid-1980's.

3. Manipulated Yuan or not, this particular era of Chinese busy-fingers-cheap-labor is coming to an end. China is actually outsourcing to places like Vietnam and is also moving some plants to the US (recent news, last 3-6 months or so).

4. Us getting snookered in every deal? Not really. Walmart, Apple, IBM, et al, were not born yesterday. They've all done quite nicely, thank you. So have Boeing, most of the top law firms, Goldman/Sachs, Applied Materials and General Motors.

What they have been able to do is to maximize jobs. They do this for a simple reason: too many unemployed and the central government loses the 'Mandate of Heaven' and are, quite literally, ripped to shreds by angry mobs (who then, historically, go on to starve to death in the streets, which removes the over-population and allows a new group of autocrats to take over and reestablish order. Chinese history is like a long song, the chorus is always the same).

Now, this era is ending because the salaries have continued to rise in China (up more than 10X in the last 20 years) and they are pricing themselves out of markets. There's only so long you can sell below actual costs before the birds come home to roost. We're getting closer in China's case.

Does that mean that zero-skill factory assembly jobs are coming back to the US any time soon? No. Much as the US unions and Dem party would love to rebuild a lumpen proletariat here, that is not in the cards. But China's days of simply converting limitless rice farmers into factory grunt labor is ending, too.


Just when we were getting used to it; the game changes.

[soonercruiser]

We give free egg roll with every new account.
No, no!
"With six (accounts), you get egg roll"!
:chuncky: