Wednesday, October 8, 2014

IMF gloomy Japanese like Hong Kong to invest and sell Germany

IMF gloomy about economy growth.Japenese like Hong Kong(believe or not) to put their money in,selling assets in Germany.Of course,the Japanese own about billion in U.S Governments bond, foreign second largest holder of U.S Bonds,of course Ciana(the middle Kingdom) is largest foreign holder.U.S Banks hold a lot U.S Government Bond to meet tougher require requires,but couther the FED easy money policy but does save money for U.S Government because demand is higher that nature,hence,price is higher than should be,which keeps the interest on bonds lower.However the bank get very little return for income on the bonds,plus it ties up capital which bank could lend out.

No comments:

Post a Comment