主题：【整理】zt China helpEurope, AF -- parishg

SPEND YOUR USD RESERVES TO BUY ANYTHING WHICH CAN IMPROVE AVERAGE CHINESE'S LIFE. Paper money has no economic benefits for average Joes.

I am NOT a fan to buy US gov. bonds at all. EVER SINCE 2005, ANY FURTHER INVESTMENT IN US GOV. BONDS ARE ALREADY QUITE STUPID. You should blame your fellow Chinese back in Beijing, not me for doing that stupid investment.

Right now, China gets its reserve stuck in USD or Euro assets. To be frank, it is a choice between two evils and none of them are ideal: Euro currency could die at any moment given the funny irreponsible behavior of those PIIGs nations; USD assets are not much better, but at least, the US treasury officials under Hank and Tim and Fed chairman know how to behave responsibly during the 2008 crisis.

Americans still have at least consistent strategy, smart central bankers and functioning banking system. The banking system were recapitalized and has passed the most dangerous stage.

YOU TELL ME WHAT EUROPE HAS IN THE END? A CENTRAL BANKER CALLED TRICHET WHO KEPT ON HIKING KEY RATE EVEN DURING A PAN-EUROPEAN BANKING CRISIS??? Now, finally, that Italian new central banker has to correct his weird policy by just cutting rate by 25bp. Trichet also hiked interest rate in 2008, and then reversed his own decision in humiliation.

It is already consensus among many bankers that the ECB bureaucrats are a bunch of jokes: too many politicians there who do not understand how market works.

Then you have a malfunctioning European Union--even now, all decisions still depend on coordination between Germany-France. Given the serious nature of this banking crisis, ANY MEANINGFUL ACTION SHOULD BE MADE AT THE EUROLAND LEVEL AND NATIONAL INTERESTS must be depressed with a Euroland perspective.

But you look at the whole crisis ever since 2010--no role of any European institution, such as Commission, EU president, European Parliament. Everything is still done through complicated inefficient diplomacy among all those pighead national leaders, who have all kinds of whims every five minutes.

The whole US crisis was killed by three key decision-makers: Hank Paulson, Ben, Tim Geithner. Perfect dream team. Congress created some noise, but quickly cooperated.

THEN YOU LOOK AT THE WHOLE FARCE OF EURO RESCUE, you tell me who are really making thoughtful responsible decisions there??

Anyway, I put my wealth where my mouth is: gold, real estate and US/Canada gov. bonds. If you prefer to waste China's reserves into those Greeks/Italian/Portuguese/Spanish bonds, then PLEASE GO AHEAD.

Anyway, Greek bonds already enjoyed 50% haircut. Good luck!