There's no better place to invest than in the United States. They are so confident in our economy their combined purchases of U.S. Treasury Securities represent 24% of the entire U.S. Treasury Securities. Can there be too much of a good thing apparently not in their eyes. No doubt about it America is still the safest economy to invest in.
China on the other hand has just about or is in the process of curtailing lending because of their bookkeeping errors. They don't know who owes them the money. Now that is a huge banking debacle, although it is quite similar to the banks in the United States foreclosing on properties they don't even own and have no clear record of who does own those properties - perhaps China does. Well we will be sorting that one out for quite a while. Do you suppose we outsourced our bookkeeping to China or is this just a STRANGE coincidence???
It seems as though when a loan is sold the paper work doesn't follow along in the transaction; just another reason to stop the foreclosure process until they know who owns the property. I am quite confident that the banks and loan servicers don't know who to send the money to. Is it just sitting in a huge pot waiting for someone to claim it? Is it in an Interest Bearing Account"? Another important and interesting question is where is this money going or who really lost what??
I am beginning to believe these Federally Regulated Banks and Lending Institutions (any entity that directly lends money is regulated by the Feds) are not regulated very well. Should we give them more supervisory powers? It amazes me that banks are allowed to keep assets in an "off balance sheet account" simply because they don't know how to value them (or so they said about value). Yikes isn't that what Enron did?? Didn't we prosecute them??
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