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by JumpCrisscross
1687 days ago
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> Why should the US do anything? If private investors want to invest in China, that's fine. But pensions and banks should not, and should not be investing in funds that do. Their risks are shared, and China trashing their balance sheets is a public policy concern. |
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It could be argued that pensions should not be investing in risky bonds (or assets), but this idea shouldn't have anything to do with china specifically. Institutions that can't absorb these risks should not take them.
Just because it's china related, doesn't mean that the gov't should have a specific policy to prevent it from happening (but allow these institutions to invest in other, equally risky assets). To allow such policy to be set is to turn investment into political weapon. I do not want to see that.