The US is living on borrowed money (yes, thats the money we used to bail out the real estate deadbeats, finance easy money for new homeowners, car companies). Europe is living on borrowed money ("stimulus package" to do the same, but of course, since Europe has all kinds of restrictive laws around firing people, their economy hasn't turned around as quickly, PLUS most recently, the recent retroactive payment on Greek democracy).
Who has money to deal with further crises?
Today we were reminded, China! China has been hoarding all our US cash while we've been borrowing to finance our fancy consumption standards.
If they have cash, why don't they step it up to bail out these Greek dudes?
It is an economic concept called "free riding". If the other developed countries pony up the cash to deal with this, why bother? China can just free ride off the other countries providing financing to float the global economy towards uninterrupted consumption of "stuff", which of course drives the Chinese economy.
Would China step it up if the global pockets are empty?
Trades on deck:
GS
Euro
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