occdude

China ETFs: Crisis and Opportunity

Ditto on the dangers of Chinese investing. You have to remember these guys are still communists and of the totalitarian mindset. Besides that, with our enormous trade deficit that expands monthly we run the the very real risk of defaulting either via debasement of money supply (most likely) or flat out default (Argentina style). At that point what are the Chinese going to do? Seize American capital? I think thats at least a small possibility and one that should be considered. It would kill foreign investment, but the scenario outlined would be in a climate of economic stress and I dont think people would have the same warm and fuzzy feeling about globalization as they do even now, I think that would be a "going to the matresses" option.