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How the mighty have fallen...

How the mighty have fallen...

Old Mar 13th 2009, 7:45 pm
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Default How the mighty have fallen...

March 13 (Bloomberg) -- The Obama administration sought to ease Chinese Premier Wen Jiabao’s concern about U.S. government debt, reiterating pledges to cut the budget deficit in half in four years.

“There’s no safer investment in the world than in the United States,” White House Press Secretary Robert Gibbs said today.

Wen earlier said that China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe.

President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of debt sales to fund a $787 billion stimulus package. China held $696 billion in U.S. Treasury debt as of Dec. 31, more than Japan’s holdings of $578 billion. The total foreign holdings of U.S. Treasury debt at the end of last year was $3.1 trillion.



Out of a total debt of $11 trillion that is, meaning that every single american citizen carry a $36.000 debt...
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Old Mar 13th 2009, 8:18 pm
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Default Re: How the mighty have fallen...

Originally Posted by bimcnorth View Post
March 13 (Bloomberg) -- The Obama administration sought to ease Chinese Premier Wen Jiabao’s concern about U.S. government debt, reiterating pledges to cut the budget deficit in half in four years.

“There’s no safer investment in the world than in the United States,” White House Press Secretary Robert Gibbs said today.

Wen earlier said that China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe.

President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of debt sales to fund a $787 billion stimulus package. China held $696 billion in U.S. Treasury debt as of Dec. 31, more than Japan’s holdings of $578 billion. The total foreign holdings of U.S. Treasury debt at the end of last year was $3.1 trillion.



Out of a total debt of $11 trillion that is, meaning that every single american citizen carry a $36.000 debt...
Almost as much debt per capita as every Emirati in Dubai.................

The money's safe in T-Bonds - where else can all that money go? It's one of the very few markets big enough to absorb it all............
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Old Mar 13th 2009, 8:27 pm
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Default Re: How the mighty have fallen...

Originally Posted by The Dean View Post
Almost as much debt per capita as every Emirati in Dubai.................

The money's safe in T-Bonds - where else can all that money go? It's one of the very few markets big enough to absorb it all............

Well, they could of course boost their own consumer demand by delinking their currency and allow the puchasing power of their population to rise significantly..So far they have been loath to do it as the current regime like the way China is becoming the manufacturer/exporter of the world.
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Old Mar 13th 2009, 11:17 pm
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Default Re: How the mighty have fallen...

Originally Posted by The Dean View Post
Almost as much debt per capita as every Emirati in Dubai.................
Sorry but loans that don't have to be repaid in my opinion, is not debt.
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Old Mar 14th 2009, 5:07 am
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Default Re: How the mighty have fallen...

Originally Posted by AnotherWorld View Post
Sorry but loans that don't have to be repaid in my opinion, is not debt.
Really?

Try telling that to Nakheel, who in December this year are due to repay USD 3.52 billion to their sukuk bond holders.

Come to think of it, try telling it to the bond holders themselves.

The market has spoken - anyone brave/foolish enough to buy them now will (if they are successfully honoured and repaid) earn a return in excess of 45% p.a. between now and then.
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Old Mar 14th 2009, 10:41 am
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Default Re: How the mighty have fallen...

Originally Posted by The Dean View Post
Really?

Try telling that to Nakheel, who in December this year are due to repay USD 3.52 billion to their sukuk bond holders.

Come to think of it, try telling it to the bond holders themselves.

The market has spoken - anyone brave/foolish enough to buy them now will (if they are successfully honoured and repaid) earn a return in excess of 45% p.a. between now and then.

I actually made a killing on Nakheel bonds maturing December this year.
When Dubai got the $20bn bailout bond issued they had a rally and reached 87% of nomination and I sold the very same day..

The market is surprisingly often wrong but not as often as the credit rating agencies who are totally discredited after this global crisis..But don´t get me started on them!
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Old Mar 14th 2009, 11:25 am
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Default Re: How the mighty have fallen...

Originally Posted by bimcnorth View Post
The market is surprisingly often wrong but not as often as the credit rating agencies who are totally discredited after this global crisis..But don´t get me started on them!
Tell me about it, I hear Berkshire Hathaway where downgraded . Really...someone thinks they may have difficulty meeting their future obligations?

Rating agencies really tell you bugger all about a company and it's financial position, if they had a clue they'd be rolling around in money laughing rather than writing reports and chewing on biros.
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Old Mar 14th 2009, 12:58 pm
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Default Re: How the mighty have fallen...

Originally Posted by The Dean View Post
Really?

Try telling that to Nakheel, who in December this year are due to repay USD 3.52 billion to their sukuk bond holders.

Come to think of it, try telling it to the bond holders themselves.

The market has spoken - anyone brave/foolish enough to buy them now will (if they are successfully honoured and repaid) earn a return in excess of 45% p.a. between now and then.

Sorry, I was reading literally your comment about debt per capita for every emirati and relating it to emiratis personal "loans" which dont have to be repaid.
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Old Mar 14th 2009, 1:09 pm
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Default Re: How the mighty have fallen...

Originally Posted by Charismatic View Post
Tell me about it, I hear Berkshire Hathaway where downgraded . Really...someone thinks they may have difficulty meeting their future obligations?

Rating agencies really tell you bugger all about a company and it's financial position, if they had a clue they'd be rolling around in money laughing rather than writing reports and chewing on biros.

True..and it´s laughable when countries that have seen their local economies staring into the abyss get an AAA rating while say Abu Dhabi who basically are debt free and just got hundreds upon hundreds of billions stashed away AND are running at a positive cashflow right now just gets AA...same as Slovenia

And how they can just give China (A) worse ratings than USA (AAA) when one got the money and the other the mother of all debts..
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