Showing posts from February, 2009

Shopping spree

$2 trillion in what should one do??

Go shopping of course!! because only if an entity with such huge savings goes on a shopping spree can the world have something to cheer about.

But instead of terming "shopping", if it translates into "investing" it would make much more sense for both the consumer and the producer in the long run.

China with huge forex reserves has started its strategic acquisitions in this downturn where the commodity prices have gone down tremendously. Till recent times when people resented investments from China because of the negative image about them, but everyone is welcoming them with open hands. Obviously anyone would latch onto any country/person willing to extend capital in these very tight credit times.

China has spent $41 billion in last week alone..some of the things in its shopping list are:
a) Venezuela received a $6 billion loan from China and agreed to increase its oil exports to China
b) China Minmetals Corporation b…