The Times reports that panicky American investors are repatriating their capital, and the Chinese haven’t hit the brakes on buying up American debt, either. That’s exacerbating the impact of the financial crisis globally by soaking up liquidity that could finance debt elsewhere. In other words, money is still flowing uphill, largely because high ground is safer when the water’s rising in the valley.
But capital from emerging markets is increasingly flowing towards developed economies as well, where it is busy buying up assets. 2point6billion reports:
In other words, not only is China nationalizing the U.S. government, it’s also nationalizing the private sector. Okay, I’m exagerrating, but you get the picture.