This part of the website shows 2 newspaper articles on the issues of a global economy. The first article says something about the credit crunch that's going on now, the world economy is getting some hard fases to go trough.
The second article is about the global shift and China becoming a bigger economic world power than the United States.
New York 03/03/2009, U.S.A. --- The Dow Jones has made its biggest fall since 12 years with a loss of 4.2% to 6763 points and came beneath its psychological border of 7000 points. All stock exchanges of Wall Street underwent big losses.
The Dow Jones fell down enormously mainly due to the losses of the big banks and insurance companies. Citi Group had by far out the biggest loss of the day and fell down by 20%. Other banks like Wells Fargo went down by 10%. The biggest insurance company in the world, AIG, received 30 billion dollars from the US government, which had already pumped 150 billion dollars 6 months ago in the company and AIG is now owned for 80% by the US government
Due to the credit crunch it is seen as a normal thing that governments all over the world are buying out the banks and insurance companies. The government can´t simply let the banks go bankrupt because then all hell will break loose and the financial market would collapse. Because the big banks were selling each other their mortgages to pay for their own mortgages it finally came to a point where the banks couldn´t pay their mortgages anymore and almost went bankrupt. What we saw in this development was that Asian companies were buying shares in these banks and so becoming partially owners of the bank. For example JPMorganChase received lots of money from Chinese investors and companies.
(Source: RTL Z)
Shanghai 23/08/2059, China --- Second US bank falls into Chinese hands. Kazumi Banks Inc. have bought the rest of the shares of Wells Fargo and is now totally in hands of Kazumi Banks Inc.
Kazumi Banks Inc. have bought the remaining shares of Wells Fargo making it the second originally American bank now owned by the Chinese. 5 years earlier Gotan took over Citigroup. Kazumi Banks Inc. had already 60% of the shares in their hands and have payed for over 43.6 billion dollars for the remaining 40% of the shares.
Now when 2 American banks have fallen into Chinese hands it’s just a matter of time that China will have total control on the financial market. The US its position in the world market is becoming less and less important and that is China more and more and they have to acknowledge that. However there is still fierce competition between the several banks in the US with the Chinese owned banks slightly on top position.
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