Is the Chinese Government Really This Dumb?

China's $200 billion sovereign wealth fund, China Investment Corp, plans to invest soon in U.S. taxpayer subsidised investment funds of toxic mortgage-backed securities, Reuters is reporting.

Under the Public-Private Investment Plan launched earlier this year, the U.S. government plans to seed a number of PPIP funds that would combine taxpayer money with private capital to buy as much as $40 billion in toxic securities from banks.

On the surface this is a great play for CIC, since the U.S, would, for all practical purposes, be financing CIC's leveraging up of its investment.

Webmaster's Commentary: 

Guess who is on the hook to make good on the promised profits.

Tags:

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA