Oct 20 2008
Global Financial Crisis: The Chinese Checkbook?
With cash-strapped companies coming cup-in-hand to their equally cash-strapped governments, the world over is looking for Warren Buffett-sized checkbooks to help ease the credit crunch.
Increasingly, the world is looking to China and its $1.9 trillion in reserves.
Should China whip open its gigantic checkbook to bailout the global financial system?
Does it even want to?
China’s been burned before with its investments in the U.S. financial sector. It has a 9.9% stake ($5 billion) in Morgan Stanley (MS:NYSE) that has been pummeled by the industry-wide downturn. And some Chinese leaders believe that the U.S. and Western Europe should clean up their own mess.
