China banks told to halt lending to US banks


Scott Free
#1
China banks told to halt lending to US banks


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)

Source

Is this a major non-confidence vote in the US currency or are the Chinese looking to cash in on the subsequent fire sale?

Either way this might very well prevent the bailout from working.
 
Socrates the Greek
#2
Quote: Originally Posted by Scott Free View Post

China banks told to halt lending to US banks


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)

Source

Is this a major non-confidence vote in the US currency or are the Chinese looking to cash in on the subsequent fire sale?

Either way this might very well prevent the bailout from working.

If China stops credit to the US, US will need money to buy oil from the Arabs.............we all know when credit is limited, mobility takes a big hit...... this is a financial storm never experienced in the past 50 years facing the US.
 
Scott Free
#3
It's going to hit us too.

I expect it won't stop until we have world war. The US has no choice. It's that or civil war. I just can't imagine Americans starving to death quietly.
 
Socrates the Greek
#4
Quote: Originally Posted by Scott Free View Post

It's going to hit us too.

I expect it won't stop until we have world war. The US has no choice. It's that or civil war. I just can't imagine Americans starving to death quietly.

The civil war may take place if the 1.4Trilion is what the looks of the final cost is and doesn't fix the problem people realizing that this is taxpayer dollars, we may see a revolt in the US.
Banks will close the doors no deposits no lending.......It will be a nightmare, as it all ready is a category 1 financial storm, it may go to a category 5 were gas stations will have no gas to sell being the US will not be able to purchase from world markets crude oil..........Bad times ahead.....
 
Lester
#5
This is a major blow to the US , How they gonna pay their bills without China buying US securities-Other countries may see this the beginning of a run and do a pre-emptive sell off of whatever U.S assets they hold. China is only the first one out of the gate.
 
Socrates the Greek
#6
Quote: Originally Posted by Lester View Post

This is a major blow to the US , How they gonna pay their bills without China buying US securities-Other countries may see this the beginning of a run and do a pre-emptive sell off of whatever U.S assets they hold. China is only the first one out of the gate.

I would imagine some European country s are some of the creditors as well, Japan is facing similar problems there. I think Japan has a current interest rate or .05%
Their economy has been in the tank for the longest time......
Interesting how power shifts mach like siting on the poker table.....today rich and tomorrow sell the Escalade SUV to pay for the mortgage payments for a year....who would think that outcome in the land of the free.
Last edited by Socrates the Greek; Sep 26th, 2008 at 02:59 AM..
 
Praxius
#7
Quote: Originally Posted by Scott Free View Post

It's going to hit us too.

I expect it won't stop until we have world war. The US has no choice. It's that or civil war. I just can't imagine Americans starving to death quietly.

Indeed... if they're going down by their own foolish actions, I wouldn't expect anything less then them taking everybody else with them.

In regards to the big multi-billion dollar bailout they're planning down south, I heard on the radio this morning about one politician "Getting down on one knee and begging them not to let the public know just how badly the talks went"

I wonder what that means....... I'll try and dig for some official information in regards to this sometime today.
 
Avro
#8
Jesus Christ, what a bunch of fear mongers you guys are.
 
Zzarchov
#9
Id like to point out, unlike Canada and most nations, the USA is about (or was recently) 90% self sufficient.

Worst case scenario they tighten their belt and go isolationist. Thats not exactly a new thing either.
 
darkbeaver
#10
Quote: Originally Posted by Avro View Post

Jesus Christ, what a bunch of fear mongers you guys are.

Go back to sleep Private Stupid, someone will wake you up when the war's over.
 
Praxius
#11
Quote: Originally Posted by Avro View Post

Jesus Christ, what a bunch of fear mongers you guys are.

I haven't been wrong about how this is all playing out yet.... I knew it was only a matter of time before China started to do this..... at the very least contemplate it.

It's got nothing to do with fearmongering, as I'm not fearful of any of it.... it's just simple reality in which I've already expected and prepared for.

It's more sad then anything.

Tell you what... like the Global Warming thing.... if none of the above ever happens, then I'll owe you a coke.
 
darkbeaver
#12
The Chinese know a sucking deal when they see one. For that matter most of the rest of the world has zero confidence in the ability of the American economy to be salvaged, Americans are the laughing stock of the free world as we watch them help the robbers loot the US treasury and leave a toilet paper IOU in the vault.
 
Scott Free
#13
Quote: Originally Posted by Zzarchov View Post

Id like to point out, unlike Canada and most nations, the USA is about (or was recently) 90% self sufficient.

So was the USSR before it fell and with considerably less infrastructure.
 
Socrates the Greek
#14
Quote: Originally Posted by Scott Free View Post

So was the USSR before it fell and with considerably less infrastructure.

Interesting how it all works at the end, “what goes around will come around” the boomerang effect……..


 
Praxius
#15
Quote: Originally Posted by Socrates the Greek View Post

Interesting how it all works at the end, “what goes around will come around” the boomerang effect……..

"I'll get 'em!"

*tosses*

"Oh no! It's coming back this way!"

"That throwing stick of your's has boomeranged on us!"
 
Socrates the Greek
#16
Quote: Originally Posted by Praxius View Post

"I'll get 'em!"

*tosses*

"Oh no! It's coming back this way!"

"That throwing stick of your's has boomeranged on us!"


What an intelligent comment…………………
 
Praxius
#17
Quote: Originally Posted by Socrates the Greek View Post

What an intelligent comment…………………

No it's not.... it's from the Simpsons.... it wasn't supposed to be intelligent at all.

I do agree with your above comment that I originally quoted, I just figured I'd go along with the boomerang thing.
 
Socrates the Greek
#18
Quote: Originally Posted by Praxius View Post

No it's not.... it's from the Simpsons.... it wasn't supposed to be intelligent at all.

I do agree with your above comment that I originally quoted, I just figured I'd go along with the boomerang thing.

OH ok.....
 
darkbeaver
#19
It's the graphic Praxius drawing a scene, really quite good communications Socrates, anyway the boomerang idea is ok but I like the poison seed analogy. This trouble was a result of financial gardening from seeds planted in Chacogo after all. That Friedman guy is going to get dug up and hung with the rest of them. He convinced a generation of economists to believe in south sea bubbles apparently. He was a very bad man, a wicked man possibly a psycopath or maybe even a witch. Lot of that going arround these days, thank god for fundementalist prime ministers who know what to say to the flock to prevent the wholesale tar and feathering of bankers in Canada. But our bankers are nice DarkBeaver you say, nonsence, we should get rid of them anyway you can't train them they'll always be wild ravenous animals, even if they've had all thier shots you still can't trust them especially arround nice fluffy fat accounts. So as a preventative measure we should imprison our bankers as a public safety measure till this crisis is brought under control, they will have nice clean straw pallets and recreation areas set aside in a reserve type setting with a small 18 golf course, they will not be allowed balls though, as a precaution.
Last edited by darkbeaver; Sep 26th, 2008 at 03:12 PM..
 
jimmoyer
#20
Do all you guys accept this news as a matter of faith, as a matter of your own belief system ?

Let's check the claim of this news artice that Chinese regulators are telling chinese bankers not to lend any more to the United States.

Hmmm...

I wonder what helping the US crash will do to their huge investments in America?

I think the truth is more interesting than this latest urban myth.
 
darkbeaver
#21
Quote: Originally Posted by jimmoyer View Post

Do all you guys accept this news as a matter of faith, as a matter of your own belief system ?

Let's check the claim of this news artice that Chinese regulators are telling chinese bankers not to lend any more to the United States.

Hmmm...

I wonder what helping the US crash will do to their huge investments in America?

I think the truth is more interesting than this latest urban myth.

You're teasing us Uncle Jim, tell us what is what.Why do you make us wait for the ending when you have a viable alternative, we've poured our hopes and fears out to you with abandon and you have nothing for us in return but a knowing reluctant caution. Oh and us faithful believers in the news have that in common with you Mr Phoniex Rising from the Iraqi Dust Man.
 
Scott Free
#22
Quote: Originally Posted by jimmoyer View Post

Do all you guys accept this news as a matter of faith, as a matter of your own belief system ?

Let's check the claim of this news artice that Chinese regulators are telling chinese bankers not to lend any more to the United States.

Hmmm...

I wonder what helping the US crash will do to their huge investments in America?

I think the truth is more interesting than this latest urban myth.

The story is from Reuters. It's not like it was CNN, FOX or some other political affiliated government agency.
 
darkbeaver
#23
Still I'v read rumours of Reuters.
 
Scott Free
#24
Quote: Originally Posted by darkbeaver View Post

Still I'v read rumours of Reuters.

China Won't Lend to U.S. Banks" Story Untrue


"It's Ungrounded," Chinese Regulatory Official Tells Dow Jones Newswires


Hong Kong's South China Morning Post reported on March 25 that domestic Chinese banks had been told to stop lending to U.S. financial institutions to shield the country from the unfolding financial crisis. ("Mainland lenders ordered to halt interbank deals with US firms," Sept. 25, 2008, Hong Kong time.)

Dow Jones Newswires later refuted the story in an article based on an interview with an official from the China Banking Regulatory Commission. ("China Regulator: Report On Halting Lending To US Banks Untrue," Sept. 24, 2008, 11:22 p.m. E.T. )

"I've never heard of this. It's ungrounded," the official told Dow Jones Newswires.

China's central bank is one of the world's biggest buyers of U.S. Treasury bonds. Chinese government-owned financial institutions also hold significant quantities of U.S. equities.

China Investment Corp., for example, a $200 billion sovereign wealth fund, owns large stakes in both the private equity firm Blackstone Group and Morgan Stanley, according to the Financial Times.

As stock prices have slid, they have lost a great deal on both these investments. Because of this, China has resisted buying further stakes in U.S. financial institutions, and has stayed on the sidelines while the U.S. financial crisis has expanded.

Chinese officials apparently don't want to be seen as investing "dumb money," the Financial Times reported ("Prudence guides China's outlook," Sept. 24, 200.

Source

Apparently it wasn't true - I'm glad to hear it actually.
 
darkbeaver
#25
Now I'm suspicious.
 
Scott Free
#26
Why? You were right.

I always liked Reuters but I guess I'll have to be more careful from now on.
 
darkbeaver
#27
I was right, that's why I'm suspicious. But I have read bad things about Reuters. The employed media is a slippery thing, some very good writers are telling some very big lies very well. If you don't read at least four no three no five storys you'll never be able to sleep with the suspicion that you've been had again. That jesus story really bothered me Scott, I'v been paranoid ever since.
 
Scott Free
#28
In fairness to me though I didn't claim it was factual and I posted it as soon as it broke.
 
darkbeaver
#29
Dow Jones Newswires later refuted the story in an article based on an interview with an official from the China Banking Regulatory Commission. ("China Regulator: Report On Halting Lending To US Banks Untrue," Sept. 24, 2008, 11:22 p.m. E.T. )

In fairness to you I'll believe the Reauters Story the links in your followup post go to an outfit called AC something or other and not to specific articles that I could see. Dow Jones Newswires is my problem, they have strong reasons to refute the original story, a definite conflict of interest.
 
Socrates the Greek
#30
Quote: Originally Posted by jimmoyer View Post

Do all you guys accept this news as a matter of faith, as a matter of your own belief system ?

Let's check the claim of this news artice that Chinese regulators are telling chinese bankers not to lend any more to the United States.

Hmmm...

I wonder what helping the US crash will do to their huge investments in America?

I think the truth is more interesting than this latest urban myth.

China asks local lenders not to lend to U.S. banks:report


http://www.marketwatch.com/news/stor...&dist=hplatest

By V. Phani Kumar
Last update: 10:28 p.m. EDT Sept. 24, 2008
Comments: 151

HONG KONG (MarketWatch) -- Chinese regulators have asked domestic banks to stop lending to U.S. financial institutions in the interbank money markets to prevent possible losses during the financial crisis, the South China Morning Post reported Thursday. The China Banking Regulatory Commission's ban on interbank lending of all currencies applied to U.S. banks, but not to lenders from other countries, the report added, citing a source.
 

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