
China's About to Give Global Finance the Chance of a Lifetime - devy
https://www.bloomberg.com/news/articles/2018-05-06/global-finance-titans-ready-for-china-s-chance-of-a-lifetime
======
bsder
So, basically China has realized that their finance sector is a pile of fraud
and they're looking to find suckers to pawn it off onto. Then they will
"repurchase in the name of national security", at significant state discount,
the ones with good health and leave everybody else holding the bag.

Good for them.

Unfortunately, our "too big to fail" banks are likely to purchase large
tranches of this garbage.

~~~
mistermann
You can hardly blame our banks from licking their licks at the prospect of
this...if all goes well they can make huge profits. If it's a debacle, they
can get bailed out by the taxpayers again, followed shortly thereafter by
giant bonuses for amazing performance recovering from the massive losses to
massive (taxpayer funded) profits.

Will be interesting to see if any voices of concern make it outside of
internet forums.

~~~
adventured
The bailouts have been a taxpayer bonanza of profit in fact. It's already over
$350 billion, including the TARP profits.

Taxpayers made money on the bank bailouts. TARP was a profitable program,
generating $15.6 billion in a short amount of time. As a consequence of that
mess, the US banking system was brought under considerably tighter control and
oversight of the Fed. America's banks are now the strongest - by far - in the
world, and are highly capitalized.

The overall bailouts, which included home owners, and far exceeded the bank
bailouts by about 30 fold, produced closer to $350 billion in 'profit' for the
taxpayer.

Fannie and Freddie have printed tens of billions in profit for the taxpayer
and continue to.

US taxpayers received the largest bailout in world history: the trillions of
dollars the Fed spent to stabilize the housing market, which is the foundation
to the $100 trillion in US household assets. The Fed removed vast amounts of
junk mortgages from the market and immediately began providing a base for the
housing market to recover from.

"TARP, which peaked at $411 billion despite having been authorized to spend
$700 billion, was less than 3 percent of taxpayers’ bailout exposure, which
totaled $14 trillion"

"The actual taxpayer profit on the bailout is about $350 billion"

[https://www.washingtonpost.com/business/economy/bailout-
high...](https://www.washingtonpost.com/business/economy/bailout-highly-
profitable-for-taxpayers-when-you-look-at-the-right-
numbers/2015/01/01/dc2a05a6-8fa5-11e4-a412-4b735edc7175_story.html)

~~~
patrickg_zill
No. (source to follow)

What is the daily interest, at even 0.25% annually, on $16 Trillion USD?
[https://www.forbes.com/sites/traceygreenstein/2011/09/20/the...](https://www.forbes.com/sites/traceygreenstein/2011/09/20/the-
feds-16-trillion-bailouts-under-reported/#3f22e55e26b0)

Is my math correct? Over $100 Million USD per day in interest, even at 0.25%
per year simple interest?

[https://www.wolframalpha.com/input/?i=0.0025+*+16+trillion+%...](https://www.wolframalpha.com/input/?i=0.0025+*+16+trillion+%2F+365.25)

~~~
thedailymail
It turns out that $110 million per day yield $350 billion in about 8.7 years –
not too far from when TARP funds were distributed (around 9.5 years ago)

[https://www.wolframalpha.com/input/?i=350+billion%2F110+mill...](https://www.wolframalpha.com/input/?i=350+billion%2F110+million%2F+365.25)

~~~
patrickg_zill
Are you making this your argument?

------
thisisit
And much vigilance is required too. Timing of the documentary "The China
Hustle" couldn't be more perfect:

[https://www.youtube.com/watch?v=55892jT06aI](https://www.youtube.com/watch?v=55892jT06aI)

------
EwanG
So I'd go read this, except that Bloomsburg seems to have decided to go the
NYT and WSJ route - which probably wouldn't bother me if they weren't $30+
dollars a month.

