sdnativeson, I am confused by your statement about internal Chinese debt. They hold about $1Trillion US, are you saying they have loaned out nearly all of it? And to whom is the bad real estate debt, US or internal?
$1 Trillion really is a chunk of money (no kidding ;^) )
To put the amount in perspective, one article (I believe in the Economist), said that the Chinese could use the money to buy US RE–but they would need to purchase ALL sellable land in 5 or 6 midwest states to use up the cash. It certainly puts into perspective the nearly $1 Trillion in ARM resets predicted for 2007 AND 2008.
A trillion here, a trillion there, eventually it all adds up to real money.
-one muggle
