China/Asia may be gutting the US manufacturing sector, but when it comes to money, a few recent items indicate there's more than a few dollars flowing the other way:
Alea highlights a very interesting article regarding leading US investment banks and the sub-prime fiasco. In what appears to be a brilliant on-the-fly move, they anticipated the crunch and created a new derivative to hedge their exposure. The article indicates they may actually make a bundle off it. Who's on the losing end? Asia and Europe. Some European banks appear to be on the winning end.
Not off to a good start, buying at what has been called the Blackstone Peak: China's overseas investment fund's first investment was in the Blackstone IPO and gets clobbered, sparking anger in China. Blackstone chart.
China threatens the nuclear option to sell dollars. It seems to me like this would hurt China more than the US, but no doubt US investment banks will be hedged. Other Asian tigers may feel compelled to buy dollars.
Of course, there's always seigniorage and the benefits of being a reserve currency.
The money flow is by no means one-way.
Getting tips from good stocks advisory firm helps.
Posted by: Stock Tips | December 04, 2009 at 09:24 AM
HI
Great information in this post, because we can get knowledge about the competition of USA and Asia. The article indicates they may actually make a bundle off it.
Posted by: Auction Online | January 21, 2010 at 10:44 PM
When we talk about the China (in ASIA) And USA , For economy prospective no double USA is powerful but China has now created his market and she use to cash by their own made products in all over the world.
As for information the article is very nice
Regards
Posted by: Auction online | March 04, 2010 at 10:43 PM