Fed Reserve allows Chinese Banks to take stakes in U.S. banks [ Edited ]

[chad]

The fed reserve recently eased restrictions on state-controlled Chinese banks in the U.S., despite consideration of another round of quantitative easing and criticism that the Chinese hoard our U.S. currency.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9256036/Federal-Reserve-allows-Chine...

What do you think?

Chad

[chad]

It kind of made sense to me because China already had a lage stockpile of U.S. currency- there had to be some give somewhere on the equity. The concern is always about China, a "communist" country, taking control of the entire U.S. , which was why the concern over the Chinese acquisiton of a U.S.bank which may lead to more Chinese influence. They have a great deal of influence already. But they did buy some of our Fannie and Freddie- I thiink we even wanted China to buy more- lol.... Chad

[chad]

Hey, some good news on the currency scene: BOC finally lowered interest rates that should provide some economic stimulus- of course, the questions is:ddn't China have to lower interest rates anyway(?), and the larger question, always: can you stimulate an economy by manipulating currency (?).  

Chad

[chad]

The Fed was considering another round of quantitative easing and China is a big bond seller-  I think there was some uncertainty with the euro and you wonder how good the fed's deal is with the easing, anyway.

Chad