Tuesday, January 15, 2008

The Sub In Subprime

A few days ago Josh Marshall wondered whether he should be unnerved about the fact that foreign governments (read: sovereign investment funds) were snatching up large equity positions in cash-strapped American financial services companies. I think it's more unnerving when the foreign governments decide that it's just not worth the risk anymore:

China's government has apparently squashed a multibillion-dollar investment in Citigroup Inc. by state-owned China Development Bank. The move suggests there is discord in Beijing over how best to deploy China's money pile. A few previous China investments like these have fared poorly so far financially.

These guys have got a pretty big incentive to keep the dollar from bottoming out. The question is whether there's anything they can do about it.

Posted by Judah in:  China   Markets & Finance   

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