because... "China would not have anyone to sell the securities to"
can someone clairify what mr. greenspan meant by this?
While expressing concerns about China's runaway growth rate and what he described as overvalued stocks, Greenspan played down the prospect that Chinese authorities would sell Treasuries in earnest, forcing a sharp spike in U.S. interest rates.
Asked at a commercial real estate conference if investors should be worried about this oft-cited concern, Greenspan said: "I wouldn't be, no."
Still, Greenspan said the reason such a withdrawal was unlikely was that China would not have anyone to sell the securities to, hardly the sort of comfort jittery bond investors were seeking.
I guess that if China can't sell (for whatever reason) then they will have to wait until maturity. Anyone know when most of these Treasuries will come due?
He's saying he's not worrying about them dumping them on the open market because of the price impact it would make (not in china's favor). I think he also mentioned something to the tune of "it would hurt them more than the u.s.).
That's from my recollection anyway and I only skimmed over the comments.