Lenin Was Right

Published: December 20, 2007, 10:09 am

Tags: u s economy, banks, china, state capitalism, capitalism, sub prime

"When we go to hang the last aristocrat it will be the capitalist that sells us the rope." Lenin.As American Capitalism fails it will be Chinese State Capitalism that bails it out.Kill the competition: China bails out Morgan Stanley,The Times: Morgan Stanley reported the first quarterly loss in its 73-year history after taking writedowns of $9.4 billion ( 4.7 billion) on mortgage-related investments. The bank was forced to agree a $5 billion cash injection from Beijing.The reason is that they are sitting on trillions in Foreign Direct Investment funds that they have not expended yet. Allowing them to be able to come in and bail out their capitalist competitors.Dr. Kathryn Dominguez of the Gerald Ford School of Public Policy presented her paper on this topic at the U of A School of Business annual Eldon Foote Lecture in October which I attended.I recommend reading her paper as it will explain why China's investment in Morgan Stanley is not unexpected, and in fact is the beginning of

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