Are indexes really higher, or is it the investors who are high?

[bill]

Re: Are indexes really higher, or is it the investors who are high?

The China Blackstone deal was a 3 billion dollar entry ticket purchased by the Chinese to introduce themselves as a new type of asset buyer getting into the long term game of purchasing US assets not just IOU’s (treasury bills). Today inside the summit stadium the US and China had their opening ceremony with one of the largest Chinese delegations ever to visit the US and the US greeting their future asset purchasers with open arms. What a turn out, all kinds of hand shaking, picture taking, posturing, opinions, forecast, predictions, ect.ect. all for shaping future policy to benefit all parties involved.
The reporters are coming out with all kinds of after the fact predictions, like this one at Reuters http://www.reuters.com/article/funds...70307220070522predicting the Chinese will buy up all kinds of goodies as if they are drunken sailors with a fist full of 50’s.
I predict the Chinese will take their sweet time and wait for the opportunity when assets get cheaper and sellers are real sellers not just flippers. Sure they will throw a few billion here and a few billion there but what assets have the Chinese really lined up to purchase? The Chinese announcing the coming to America to invest today in times when things are rosy was not by accident it was planned with timing applied. They would have a very difficult time coming here say in a couple of years when the economy is down or a bubble pop and people had lost a lot of money. If they show up when things don’t look so good they may have a image of a liquidator. So you enter when the window is open with the least resistant to get your foot in the door and be accepted. Then you work your way into the assets you desired when capital is needed (after Carol S. lights the cigar) and long term deals are attractive, similar to the ones I have been predicting such as infrastructure using the PPP. http://www.fhwa.dot.gov/ppp/index.htm

Live cast 5-24-07 http://transportation.house.gov/

two years later,,Hummer;)
http://www.nytimes.com/2009/06/03/bu...ef=global-home

Published: June 2, 2009
GUANGZHOU, China — General Motors has reached a preliminary agreement for the sale of its Hummer brand of large sport utility vehicles and pickup trucks to a machinery company in western China with ambitions to become a carmaker, a person with knowledge of the Chinese government approval process said Tuesday.

[BiscayneSunrise]

Re: Are indexes really higher, or is it the investors who are high?

What is most interesting about this purchase is it is a non automative manufacturer in remote western China.

This ties in with the desire of the central government to develop tertiary areas, particularly in the west of the country.

[metalman]

Re: Are indexes really higher, or is it the investors who are high?

two years later,,Hummer;)
http://www.nytimes.com/2009/06/03/bu...ef=global-home

all i can think of is japan buying real estate in nyc in 1990 when the usa was sucking wind and japan was flying high.

[jk]

Re: Are indexes really higher, or is it the investors who are high?

all i can think of is japan buying real estate in nyc in 1990 when the usa was sucking wind and japan was flying high.

except when the japanese purchased rockefeller center and pebble beach there was a lot of hand wringing about selling our patrimony. it's hard to imagine anyone thinks the chinese are really clever to be buying hummer.

[metalman]

Re: Are indexes really higher, or is it the investors who are high?

except when the japanese purchased rockefeller center and pebble beach there was a lot of hand wringing about selling our patrimony. it's hard to imagine anyone thinks the chinese are really clever to be buying hummer.

good point. but you never know... hummer might be a big winner in china. thousands of millionaires there will buy them as a poke in the eye to the usa, who they laugh at.

[bill]

Re: Are indexes really higher, or is it the investors who are high?

except when the japanese purchased rockefeller center and pebble beach there was a lot of hand wringing about selling our patrimony. it's hard to imagine anyone thinks the chinese are really clever to be buying hummer.

In addition to substandard purchases you never know what traps they can set when capital is available.
http://www.greentechmedia.com/articl...-patents-6081/

April 24, 2009
Japan Accounts for 70% of Electric Vehicle Patents

A new report from Japan's Patent Office has found that the country comprises most of the patents for electric vehicles, which include EVs, hybrids and fuel cell vehicles.

[Sharky]

Re: Are indexes really higher, or is it the investors who are high?

good point. but you never know... hummer might be a big winner in china. thousands of millionaires there will buy them as a poke in the eye to the usa, who they laugh at.

Don't forget that Hummers are derived from military vehicles. Who says the sales need to be to private individuals....

[Shakespear]

Re: Are indexes really higher, or is it the investors who are high?

Something wrong with this link

http://econ.ucsc.edu/~mpd/Int%20Fin%20Stab.pdf