Friday, December 19, 2008
Amazing Interview With a Chinese Banker
This guy manages $200 billion of investments in American companies and financial institutions--a fraction of the total $2 trillion we're into China for.
"People, especially Americans, started believing that they can live on other people’s money. And more and more so. First other people’s money in your own country. And then the savings rate comes down, and you start living on other people’s money from outside. At first it was the Japanese. Now the Chinese and the Middle Easterners."
There's more. I'm also really interested in what he has to say about how the crazy pay in the US financial system has distorted the labor market both in our country and even in his.
Update: Krugman makes the same point in his column today. "how much has our nation’s future been damaged by the magnetic pull of quick personal wealth, which for years has drawn many of our best and brightest young people into investment banking, at the expense of science, public service and just about everything else?"