November 19, 2008
Let's make the best of the bailout...
...by letting China do it for us!. The author goes on to point out that any offer from a Chinese firm could put US legislators in a tough spot where they must decide between: 1. Denying China something it really wants while at the same time ignoring a legitimate bid for a company in a capitalist market in favor of either bankrupting the company or financing it with taxpayer money; and 2. Allowing the Chinese to acquire some of the American Brand. Tough spot for them. It should be interesting to see how ideology holds up with the Chinese making a play along these lines.
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Yeah, but I think one thing this article overplays is the use of "China." Sure, these are Chinese companies trying to buy the Big 3, but they aren't the same people that hold our debts. They don't have any control over what other Chinese investors do with their money. And Chinese investors aren't going to just defy their self-interest because we hurt their feelings.
ReplyDeleteAgain, I would be all for this, but I don't know if this is the view of China we want the American people to have. It could result in a public support for protectionism at the worst possible time.