Thursday, Dec 20, 2007
Chinese are taking over Wall Street
FT: China sinks £5Billion in Morgan Stanley
Morgan Stanley has become the third top bank in a month to raise capital from a foreign state wealth fund. China Investment Corp has paid $5 billion for a 10% stake in the company.
CIC, which invests China's $1,300 billion of foreign reserves, also paid $3B for 10% of Blackstone while CITIC has bought 10% of Bear Stearns, raising concerns that the Beijing regime is flexing its financial muscle to take control of key Western assets.
Posted by little professor @ 03:05 PM (668 views) Add Comment
12 Comments
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1. doomwatch said...
I guess they decided in the early 90s an economic take down was preferable idiologically than a military solution. Evidence for this is
the amount of power stations they built between 1993 and 2000 to manufacture cheaper export goods.
2. drewster said...
On the bright side, they're only taking financial control. They aren't actually invading us with the world's largest army....
3. inbreda said...
Does feel strange though - the communists beating the capitalists at capitalism. Clue obviously isn't in the title.
4. tyrellcorporation said...
The West is sleep walking right now both ecomically, financially and militarily. Unbelievable negligence IMHO.
5. little professor said...
I'm sure some legislation will be passed soon to limit foreign state ownership of US companies. The Yanks don't want to see all that 1300 billion dollars flow back into the US, otherwise rampant inflation would ensue.
The only way they've gotten away with printing so much new money to finance spending over the years is by China soaking it all up.
6. cyril said...
Oh no it's the yellow peril!
Luckily there's nothing left in Britain except our highly skilled workforce (Ha Ha). Maybe Tony Blair was more forward-thinking than I gave him credit for.
7. george monsoon said...
Mandarin, thats the ticket, better get a head start and learn the lingo..
8. enuii said...
What use is the UK's knowledge based economy when we cannot use that knowledge to do anything anymore.
Check the back of your xmas cards this year, even M&S ones are from China!
9. Guiriduro said...
@little professor - Inflation is already ensuing. China's lost a good deal of value on its dollar reserves (versus commodities like oil, food, gold etc.), at least it could get some value back by buying the working sectors of western companies at distressed prices. Good luck to them.
10. paul said...
I for one welcome our new Chinese dictator overlords. Long live our esteemed, intelligent, well fed and physically superior leaders!
Down with the Western imperialist pigdogs!
(roll propagandist Chinese workers' marching anthem)
11. drewster said...
Governments aren't exactly known for their shrewd business acumen. China's investment in Morgan Stanley could turn out to be as wise as Gordon Brown's decision to sell gold at its low point in 2000.
12. it_is_going_with_a_bang said...
It is comforting to know that there won't be a War with China in the future, if they wanted to hurt those pesky Americans they could always pull all of their money out $ and do more damage than a cluster of nukes could ever do.