U.S. Homeowners Influence China Too
How could mortgages in the US have such an impact in China? Well, I think most of us know it does now. Last week, markets worldwide took a beating due to the interconnectivity of finances around the globe. The news here was riddled with the concerns over Americans ability to pay mortgages.
I’ve been actually hearing this for months. HSBC, is a major global bank, which was founded from Shanghai and Hong Kong banks. Several of their past few financial reports have focused on concerns over their extensive holdings in mortgages in the US and their volatility. So it had been in the news before, but it took hold as a concern throughout the world last week.
Daily you can see container after container leave ports here for US and markets around the world, so it is easy to understand the importance of China in the supply chain of products. It is a little harder to see that chain of finances from mortgages in the US, but the world is certainly linked to the success of American homeowners too now.
Labels: China Finance, US Mortgage
