China is Buying What Everyone Is Selling – Europe
- Joshua M Brown
- June 9th, 2010
“We have a saying in China, ‘Construct the eagle’s nest, and the eagle himself will come.’ We have constructed such a nest in your country to attract such Chinese eagles. This is our contribution to you.”
- “Captain” Wei Jiafu, Chinese CEO investing $700 million in Greece’s ports.
I love these kooky Chinese Captains of Industry. They’re such a throwback to the Age of the Industrialists. And they’re not playing games. Buying up every tract of arable farmland in Africa, cutting oil deals with Chavez, Ahmadinejad and Hitler’s corpse if need be, etc.
This morning’s news is that China is unleashing their billions of buying power on the deteriorating economy of Greece. The state-run casinos, ports and transportation assets will be revamped as cities like Piraeus become revitalized shipping hubs so that Chinese goods can flood into Europe.
From the Washington Post:
Spurred on by government incentives and bargain-basement prices, the Chinese are planning to pump hundreds of millions — perhaps billions — of euros into Greece even as other investors run the other way. The cornerstone of those plans is the transformation of the Mediterranean port of Piraeus into the Rotterdam of the south, creating a modern gateway linking Chinese factories with consumers across Europe and North Africa.
Given the rational temperament of the proverbial Man on the Street in Athens, they’ll probably protest it, but if they’re smart, they’ll embrace the investment and make the best of a bad situation.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.