I don't blame them. A bad loan is a bad loan no matter who you are. Except if you are a lending institution subject to Carter's Community Reinvestment Act of 1977.China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills
(CNSNews.com) - China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.
Treasury bills are securities that mature in one year or less that are sold by the U.S. Treasury Department to fund the nation’s debt.
And of course bad news loves company so here is another dose. The US housing market is in the worst shape since the Great Depression.
But cheer up! Obama almost made par again this week!The ailing US housing market passed a grim milestone in the first quarter of this year, posting a further deterioration that means the fall in house prices is now greater than that suffered during the Great Depression.
The brief recovery in prices in 2009, spurred by government aid to first-time buyers, has now been entirely snuffed out, and the average American home now costs 33 per cent less than it did at the peak of the housing bubble in 2007. The peak-to-trough fall in house prices in the 1930s Depression was 31 per cent – and prices took 19 years to recover after that downturn.
The latest Case-Shiller house price index was just one of a slew of disappointing economic data from the US yesterday, which suggested ebbing confidence in the recovery of the world's largest economy. The Chicago PMI manufacturing index showed a sharp slowdown in the pace of expansion in May, missing Wall Street forecasts and sending the index to its lowest since November 2009.
12 comments:
And the MSM is hinting that we may be heading for a 'double dip' recession: at what point in time did we ever, on the whole, start back up?
Energy and food prices have been escalating since Obama was elected, housing prices have remained in decline, or at most flat since Obama was elected, and the stock market is up just a measly 5% or so, and jobs are simply non-existent for the chronically unemployed (9.1%, that's really, really high, historically). Not exactly what I would call the end of the first 'dip.'
More accurately, we are simply in the middle of the longest lasting Super Recession since the Great Depression.
You can't call it a double dip, when we aren't even out of the first dip.
China may be dumping Treasury Bills, but according to this article, they're buying the state of Idaho.
http://www.examiner.com/conservative-in-boise/change
The dumping may be for strategic reasons, as well as economic.
TCL, Couple years ago, I said oblabber and the clown biden could give the USA to China and it wouldn't shock me.
Remember the 'gird your loins' comment from biden?
Anyway, It has to get seriously ugly at some point. Fake demand from the Fed has to be replaced by Real demand someday, and crossing that bridge isn't going to be fun.
Fredd - The real problem with our economy is the Dip in the White House.
CLady - I put in a bid also but, like always, too little too late.
Gorges - a number of years ago a Chinese general threatened to nuke California. I was amazed that the MSM did not pick up on it at all. Now I'm wondering if that would have caused less damage to America than what is happening now,
Kid- Gird your loins, tighten your lugnuts, whatever it takes. But the wheels are gonna fall off this bus if something isn't done and soon.
Tell the White House you reap what you sow.
Odie - what is happening to America is almost beyond belief. We are all reaping the whirlwind on the outright ignorance or thievery of politicians.
Sig: ...and that Dip in the White House is pointing his finger for our current econ woes every which way except inward.
Like the kid caught with his hand in the cookie jar, blaming his current situation on:
*the restricted opening of the jar
*the size of the cookies that won't allow extraction
*your lying eyes that see his hand in the jar, when in fact the jar attacked his hand
*you fill in the next one, this analogy is too painful to continue
I read the article you linked to trying to figure out who was picking up the notes that China dumped. It appears we absorbed our own debt? Or we transfered short term to long term, meaning we're paying much higher interest. Either way, we are headed towards self-imploding!
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