Comments on: Haircut Wars? Foreign Cenbanks Dump $15.2 Billion of US Debt in Week http://housingdoom.com/2009/03/13/haircut-wars-foreign-cenbanks-dump-152-billion-of-us-debt-in-week/ Sat, 11 Feb 2012 07:12:54 +0000 hourly 1 http://wordpress.org/?v= By: twist http://housingdoom.com/2009/03/13/haircut-wars-foreign-cenbanks-dump-152-billion-of-us-debt-in-week/#comment-16014 twist Fri, 13 Mar 2009 18:32:24 +0000 http://housingdoom.com/?p=2100#comment-16014 John- That story about China's concerns continues to grow. I'm wondering if they believe that "full faith and credit" is good enough. It doesn't take an economic genius to look at our GDP vs. our loan balances and come to the conclusion that we are unlikely to pay it all back. China has to be asking themselves if continuing to make loans that are unlikely to get paid back is a better way to minimize losses than having a fire sale. I just wonder though, how long they will stick with this strategy John-

That story about China’s concerns continues to grow. I’m wondering if they believe that “full faith and credit” is good enough.

It doesn’t take an economic genius to look at our GDP vs. our loan balances and come to the conclusion that we are unlikely to pay it all back.

China has to be asking themselves if continuing to make loans that are unlikely to get paid back is a better way to minimize losses than having a fire sale. I just wonder though, how long they will stick with this strategy

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