Thursday, December 30, 2010
Bankruptcy of the UK?
“I would urge you to sell any sterling you might have. It’s finished. I hate to say it, but I would not put nay money in the UK,” stated by Jim Rogers, co-founder of the Quantum fund with George Soros (Independent 21 January 2009). That is, the bankruptcy of the UK might be imminent. Barclays Bank in the UK, the analogous to Citigroup and Bank of America, needs further bailout by the government. The government of the UK realized that the banking system is extremely dangerous. All banks, such Barclays, RBS, or HBOS, are getting trouble, but except HSBC, whose headquarter is located in London. According to the media from the UK (article title: “Unless we are decisive Britain faces bankruptcy”) the Hong Kong Monetary Authority has independently and strictly regulated its Asian operations of HSBC. “The UK depositors owe Hong Kong a thank you (Guardian 18 January 2009).” Since the Communist China took over sovereignty of Hong Kong in 1997, the Chinese government has at least done great job, in the case of HSBC.