Moon Kil Woong
Moon Kil Woong
Send Message
Moon Kil Woong
Stop FollowingMoon Kil Woong
More on ABGEF.PK by Moon Kil Woong
COMMENTS STATS
8,194 Comments
26,659 Likes

Chinese Banks' Illusory Earnings [View article]
They don't need depositors, they can borrow from the Fed cheaper this depositors are worthless, just a thorn in their side and treat depositors as just that. The don't extend loans, they merely bridge loan and then dump them on the taxpayer through Fannie Mae and Freddie Mac. They don't loan money they merely loan the money they borrowed from the Federal Reserve to the US treasury at higher interest rates than what they borrowed it at. And they only make synthetic profit because they can dump all their past bad loans on the Federal Reserve who pays them out in full. Thus they don't even really take risk at all. Is this modern day banking or modern day money madness? You tell me.
Certainly the US faulting China for its poor banking system should take a good hard look at themselves. We have socialized home real estate. The US backs 9 out of 10 mortgages though Fannie Mae and Freddie Mac. While China is de-socializing property we have completely socialized our property market. That is why housing will never be the same as it was.