Finance a Car, Get a Home Loan, or Secure Small Business Funding - Welcome to the Bank of China

Many people complain that it is too hard to get a loan these days. Further, I would submit to you that as the Frank-Dobbs Law gets going, and more regulations in the banking sector come into play, we will see less borrowing and fewer loans, not more. Is there a solution?

Without financing it makes things tough for small businesses to get funding, and for startups to get going. It makes it difficult for people to buy a car, or buy a home - meaning there will be fewer autoworkers, and fewer people working in construction, as no one can afford to buy those automobiles or a personal residence.

Now then, here is something out of the blue; it appears that Chinese Banks are coming into the US and being approved by the Federal Reserve, but one has to ask if China's banks are legitimate, well-funded, and if so, by whose standards I ask?

There was an interesting article on this in the Wall Street Journal titled; "Chinese Banks Get Nod In US," by Jon Hilsenrath, Robin Sidel, and Lingling Wei on May 10, 2012. The article stated that; "The FED effectively is giving its seal of approval to China's banking regulation."

One bank mentioned was ICBC which is actually 70% owned by the government.

Okay so, let me get this straight. A nation which has been playing us in trade negotiations, manipulating its currency, and giving false financial data now has a good chunk of our money, and holds a large portion of our nation's debt - still, we wish to trust them in our consumer lending markets. China now has so much money due to the imbalance in trade deficits, and economic shenanigans that today the Chinese are looking for a place to put their money to work, as China's growth is slowing down or so it seems, so they want to lend money to the US consumer.

On one hand our government is making it so hard to be in the banking business that our own banks cannot survive. And since they cannot survive and thrive, and therefore are not making loans, we are going to let China come in to lend money to consumers, who will then have the money to buy more goods, albeit probably Chinese goods, or homes constructed in the US, but made with building materials coming from China.

The banking community is not opposed to this because they also want China to open up their markets, and their consumers for US Multi-National banks. What we have now is more intermingling of financial resources to the point that we will be acting, financially speaking that is, as one economy, not two. Is this a global economic conspiracy, no, but if you look behind the scenes, you can understand why various groups are pushing for this.

Will you buy a Chinese car, built in China, and take out a loan from a Chinese bank with a local office around the corner from where you live? You just might in the future. Indeed I hope you will please consider all this and think on it.

Article Source: Lance Winslow

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