I just want to know what your thinking about them going bankrupt
The effects this could have on a lot of people and whatnot
There is a lot more here than meets the eye and astonishingly more than the American news media is saying.
First of all the loans sold for financing homes had to get money from somewhere and the source of this first stage has been recently revealed in the Chinese press. The Central bank of China has on hand, 30 TRILLION dollars worth of American Home loan bonds that were purchased through the like of middle men such as Lehman Brothers and Merrill Lynch.
The Bank of China bought this massive amount of bonds against the advice of more seasoned bankers and now they are stuck with $30,000,000,000,000 worth of paper certificates that will probably be worth zip tomorrow.
Now one must question why a central bank would buy this much from a single source. If you are suspicious that’s ok because the answer lies in what the central bank of China is saying now, and that is they are blaming their American partners for " making them buy these bonds" . The truth is that no one made them buy anything. They bought these bonds because they made money on the side for their own bank accounts, in the form of bribes and payoffs. They call them ‘ "expedite fees and gifts" but the money ended up making them personally rich.
In the rush to sell the Chinese more paper, the American bankers ignored safety and good business sense by selling loans to people who would never be able to pay them back in order to generate the bonds to sell to the Chinese and other banks overseas. To say that this is unscrupulous is putting it mildly. The bankers were becoming rich and no matter what happens to the loans, well, they have their money so who cares.
The reason that our US Government has refused to back up the failure of Lehman Brothers and Merrill Lynch is because in doing so, they would be giving the money to the rest of the world. Quite personally, I could give a dam if the Central Bank of China looses money, they deserve it for having such stupid, short sighted, and greedy leaders.
The good thing is that America wins in the long run, we get a lot of banks with a lot of houses that will be going on sale for a very good price, compared to housing 3 years ago that was grossly overpriced because of Realtor greed, buyer panic, and Chinese financed easy money. Once all of this settles out you will find a small group of savvy Americans with a lot of money, retired because their firms are all bankrupt, property at more reasonable prices, and realistic loan terms from sound banks.
This "correction" was badly needed and has shaken the trees to get rid of some entrenched white collar thieves. Hopefully very few will be allowed back in the system.
