Winstonm Posted August 19, 2009 Report Share Posted August 19, 2009 Dick Bove points out this is insane: It is being reported that China Investment Corp (CIC) intends to purchase $2 billion of AAA rated, distressed mortgages in the United States. The press reports are suggesting that CIC is presently interviewing 9 American money managers. These managers have been approved by the Treasury to participate in the PPIP program as servicers. CIC will pick one or perhaps two to manage its investment program. Note that the PPIP program: Has the Treasury matches whatever a private investor puts up, then credits 6X as much capital. So if the Chinese are buying $2 billion, the US puts up $2 billion, and then the PPIP allows the purchase of $24 billion of distressed assets in the open market. All for $2 billion dollars. Oh, and the FDIC would guarantee the debt being issued by the PPIP. Hence, taxpayer dollars are subsidizing Chinese purchases of U.S. assets at a discount. Quote Link to comment Share on other sites More sharing options...
Al_U_Card Posted August 19, 2009 Report Share Posted August 19, 2009 How much would that be in the soon to be devalued U$? Quote Link to comment Share on other sites More sharing options...
Aberlour10 Posted August 19, 2009 Report Share Posted August 19, 2009 How much would that be in the soon to be devalued U$?http://www.faz.net/m/%7B91FD2A1E-6262-4E22-BB7C-92690AC4D520%7DPicture.jpg ;) Quote Link to comment Share on other sites More sharing options...
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