China will watch Obama with keen interest
In talking to Chinese policy makers, it is clear that they question why we in the West are bailing out the institutions and mangers that failed us, in the name of liquidity, writes BizTimes correspondent Einar Tangen. They wonder how this is going to help people pay their mortgages, car loans, credit cards and make purchases, especially after they have lost their jobs.
They understand that investment and working capital are necessary, but they see jobs and domestic markets as the keys to a healthy economy. To them, covering the bad bets of our financial institutions as businesses contract and jobs are lost seems like we are throwing good money after bad, something they have had a lot of experience with themselves.
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