Who's your bestest buddy
China these days -- Italy is going over the brink.
From the
Financial Times:
Italy turns to China for help in debt crisis
Italy�s centre-right government is turning to cash-rich China in the hope that Beijing will help rescue it from financial crisis by making �significant� purchases of Italian bonds and investments in strategic companies.
According to Italian officials, Lou Jiwei, chairman of China Investment Corp, one of the world�s largest sovereign wealth funds, led a delegation to Rome last week for talks with Giulio Tremonti, finance minister, and Italy�s Cassa Depositi e Prestiti, a state-controlled entity that has established an Italian Strategic Fund open to foreign investors.
A Bond is nothing more than a formal loan spread out over multiple investors. Will Italy be able to fund these Bonds and what will happen if/when Italy defaults. The Chinese already own a lot of businesses around the world -- will this just be an entr� into even more?
Posted by DaveH at September 12, 2011 2:06 PM