China's Wen offers to buy Greek debt

[sonomak]

Source: Reuters

China offered on Saturday to buy Greek government bonds in a show of support for the country whose debt burden triggered a crisis for the euro zone and required an international bailout. Premier Wen Jiabao made the offer at the start of a two-day visit to the crisis-hit country where he says he expects to expand ties in all areas.

"With its foreign exchange reserve, China has already bought and is holding Greek bonds and will keep a positive stance in participating and buying bonds that Greece will issue," Wen said, speaking through an interpreter. "China will undertake a great effort to support euro zone countries and Greece to overcome the crisis."

Greece needs foreign investment to help it fulfill the terms of a 110 billion euro ($150 billion) bailout. This rescued it from bankruptcy in May but also imposed strict austerity measures, deepening its recession...

China has said it needs to diversify its foreign currency holdings and has bought Spanish government bonds. In January, Greece denied media reports it planned to sell up to 25 billion euros of bonds to China.

Read more: http://www.reuters.com/article/idUSTRE69112L20101002

[TexasObserver]

1. Wu Tang advised them to diversify their bonds.

[greiner3]

2. Whoa;

And in 20 years China can foreclose on Greece if they again default? Who would their sheriff be to 'evict' all the Greeks?

[TexasObserver]

4. It's from a Chappelle Show skit with Wu Tang Clan.

It showed the Wu Tang Clan giving investment advice to couples. It was hilarious, and at one point a member of the group says "you need to diversify yo bonds!"

[DCKit]

3. Probably a better offer than the IMF and World Bank gave them.

But they still ought to "rendition" some folks from Goldman Sachs and set a precedent for justice.

[xchrom]

5. it's not like greece has every option available to them.

and they're driving mr and mrs ouzo into poverty.

[Vincardog]

7. IT is the trust fund babies and hedge fund operators taking down the Greek economy. Who do you think

their next target is?

[leveymg]

10. Us. Otherwise spelled, U.S.

[Vincardog]

11. BINGO IF we don't stop them there we will not be able to stop them here.

[DavidDvorkin]

6. "Beware of Greeks bearing gifts."

Modify appropriately for changed historical circumstances.

[Yo_Mama]

8. Since the short-term bonds are guaranteed....

This might not be much of a show of support.

The question is how much loss there will be, and many of the longer bonds are trading around a 50% discount. So if you buy, and the eventual loss is less than 50%, you have made a profit.

I wouldn't look at this as some great gesture without knowing the details.

[leveymg]

9. "China has said it needs to diversify its foreign currency holdings" - read, "sell its Dollars"

and dump its Treasury Bill holdings. That is, if we continue to escalate our pressure on China to let the Yuan float.

Mexican standoff, anyone?

[davidinalameda]

12. sell off some of their antiquities

big ass yard sale!

[CJvR]

13. Sounds like...

Sounds like China is shopping for a veto right in the EU, might be a good investment to prevent the increasingly beligerent US economic policys from spreading.