I know nothing about this but it looks like Benson doesn’t think it is a good idea, but the 8 year-old inside of me would like to see what would happen.
Just when you think American finance can’t possibly get any more bizarre… Our government is now proposing to finance large-scale Chinese government purchases of U.S. real estate. No, I’m not making it up.
China Investment Corp. (CIC), China’s $300 billion sovereign wealth fund, is considering buying huge swaths of distressed U.S. real estate, via the U.S. government-sponsored Public-Private Investment Program (PPIP). PPIP, you may recall, was created to rid banks of toxic mortgage assets by luring private investors to buy the assets with financing from the U.S. government. CIC is in talks with BlackRock, Invesco, and Lone Star Funds about buying real estate assets – including commercial mortgage-backed securities. Because most of the equity in these buildings has disappeared, buying the debt and foreclosing is the easiest way to gain control of the real estate.
Just take a minute and think about this… First, for the last 20 years, we’ve filled China’s coffers with our paper receipts (dollars). In exchange for several future generations of savings, we got cheap furniture, children’s toys, and electronics we didn’t deserve. Now, we’re going to finance – with future generations of taxes – China’s purchases of our trophy properties
I don’t know if this applies, but back in the 80’s, when Japan seemed supreme, they bought several of our trophy properties, and then, when their economy (it happens to all of us) collapsed they had to dump them at a loss.
From what I can see the finance of all of this doesn’t seem like a good idea, but I would love to see all of those fireworks set off.
kennethcwarren64 almost 14 years ago
I know nothing about this but it looks like Benson doesn’t think it is a good idea, but the 8 year-old inside of me would like to see what would happen.
Bluejayz almost 14 years ago
It can’t create any more chaos than no regulation has.
cfimeiatpap almost 14 years ago
Just when you think American finance can’t possibly get any more bizarre… Our government is now proposing to finance large-scale Chinese government purchases of U.S. real estate. No, I’m not making it up.
China Investment Corp. (CIC), China’s $300 billion sovereign wealth fund, is considering buying huge swaths of distressed U.S. real estate, via the U.S. government-sponsored Public-Private Investment Program (PPIP). PPIP, you may recall, was created to rid banks of toxic mortgage assets by luring private investors to buy the assets with financing from the U.S. government. CIC is in talks with BlackRock, Invesco, and Lone Star Funds about buying real estate assets – including commercial mortgage-backed securities. Because most of the equity in these buildings has disappeared, buying the debt and foreclosing is the easiest way to gain control of the real estate.
Just take a minute and think about this… First, for the last 20 years, we’ve filled China’s coffers with our paper receipts (dollars). In exchange for several future generations of savings, we got cheap furniture, children’s toys, and electronics we didn’t deserve. Now, we’re going to finance – with future generations of taxes – China’s purchases of our trophy properties
cfimeiatpap almost 14 years ago
Start a war or two…………
kennethcwarren64 almost 14 years ago
I don’t know if this applies, but back in the 80’s, when Japan seemed supreme, they bought several of our trophy properties, and then, when their economy (it happens to all of us) collapsed they had to dump them at a loss.
From what I can see the finance of all of this doesn’t seem like a good idea, but I would love to see all of those fireworks set off.
pirate227 almost 14 years ago
^ I think it applies perfectly. Let them buy the distressed real estate, we’ll get them back when the pendulum swings back, like it always does.