http://www.reuters.com/article/marke...16693720080925
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BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.
The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.
"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.
A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)
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Regardless of whatever may happen with a bailout plan, the most serious news might be coming from outside the U.S. If China stops lending to the U.S., other countries will follow suit, and the American economy is toast.
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Originally Posted by Reckoner
More bad news for the economy as Washington Mutual goes under, more fuel for the fire!
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This really isn't bad news. Everyone already expected WaMu to go down, and it did so in just about the least painful way possible.
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Originally Posted by cors8
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PDF link for more details:
http://marcambinder.theatlantic.com/...Principles.pdf
This plan looks terrible, and I don't know if any credible economist think that it has any chance of accomplishing anything. If you want to compare, the Dodd plan is much better than both this one and Paulson's original one.
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Originally Posted by Tri-ring
Most people do not understand the implications this has to the US economy so let me elaborate.
For example, every barrel of oil bought by Japan have to be paid by US dollar so the Japanese company purchacing that barrel needed to exchage Yen into dollar and everytime a currency transaction is made a US Federal Bank made profit through transaction surcharge of 2 percent.
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I was under the impression that it made little difference what kind of currency oil was traded in, and that any profits gained would be far less than 2 percent. Do you have any information links that talk about this process further?