China interested in scooping up some of our bluechips?

Discussion in 'Stocks' started by KINGOFSHORTS, Mar 30, 2009.

  1. I have heard from a few folks that China might unwind some of those treasuries and look towards scooping up and potentially buying out companies like GE,BA etc..

    That would be interesting but can China own something like BA or GE without the US putting a stop to it?

    I mean BUD got bought out by a foreign entity so I guess anything can happen.
  2. CateFul


    I've heard Geely bidding for GM's overseas unit.
    Unlikely anyone would put money into its domestic business. It's a mess and plus no one wants to deal with the union.
  3. Molec


    I am sick of these new powers like China showing how new and cool they are

    we went through this whole mess with Russia

    and now I guess its China time

    what's next Africa time :D
  4. Looks like Arabs are scooping up some of our companies. ie Textron.

    I wonder who is next. GE,BA, etc..

    load up buy America cheap.
  5. 1) Foreign investors tend to sell treasuries at "low" levels, not "high" levels.
    2) Foreign investors tend to buy stocks at "high" levels, not "low" levels.
    3) Foreign entities will probably have trouble buying complete ownership of anything that has military significance.
    4) There's nothing "special" about the formula for BUD's products. :cool:
  6. Companies like GE and GM are wholly owned buy the govt and have been since WWII. Don't get lost in the dynamics of what constitutes a public company: if shit hits the fan GM is pumping out tanks and fighters within 20 days. GM is not too big to fail - they can go bankrupt and still function perfectly fine. There are federal mandates that will not allow the GM infrastructure to ever go away.

    China should buy interest in some US companies - it's good for market's in general, but don't think the larger companies are things that can be bought.(note: GM has around 150B in assets/IP/other right now. If you want a piece buy the preferred or the special bonds, but stay away from the common unless you have a huge pair for trading.)
  7. piezoe


    I think Soros is essentially correct re the the United States' future. When a country spends too much on unproductive assets, consumes, over a long time, more than it produces, and wealth becomes concentrated in too few hands, that will eventually lead to trouble, though in reaching one's final destination a great deal of fun can be had along the way. And the trip can take much longer than anyone might imagine.