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Old 06-30-2012, 11:26 PM
 
Location: Tennessee/Michigan
25,220 posts, read 31,422,705 times
Reputation: 15510

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Look Who's Buying America Now!

According to The Wall Street Journal, the most popular story on WSJ.com on Monday was a report about how Lennar (LEN) may apply for a $1.7 billion loan from China to help finance major multifamily housing developments in San Francisco.

Valued at $10.5 billion in total, the projects to reincarnate two former Pacific Coast naval bases as mixed-use residential and commercial real estate have run aground over lack of funds. As a result, Lennar appears poised to open the door to China owning an interest in a big chunk of prime U.S. beachfront real estate. And that's just the start.

Look Who's Buying America Now! - DailyFinance
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Old 07-01-2012, 12:09 AM
 
25,278 posts, read 27,405,587 times
Reputation: 34581
Quote:
Originally Posted by John1960 View Post
Look Who's Buying America Now!

According to The Wall Street Journal, the most popular story on WSJ.com on Monday was a report about how Lennar (LEN) may apply for a $1.7 billion loan from China to help finance major multifamily housing developments in San Francisco.

Valued at $10.5 billion in total, the projects to reincarnate two former Pacific Coast naval bases as mixed-use residential and commercial real estate have run aground over lack of funds. As a result, Lennar appears poised to open the door to China owning an interest in a big chunk of prime U.S. beachfront real estate. And that's just the start.

Look Who's Buying America Now! - DailyFinance
Actually, what you're really looking at is capital flight from China, not an attempt for the Chinese to take over the country. The Chinese are undergoing a hard economic landing right now based on a highly overvalued real estate market with astounding excess in inventory (Right now the inventory on hand in places like Shanghai and Beijing are roughly 10-11 years. The United States, at the high of the real estate bubble, had roughly 10-14 months). Smart Chinese have figured this out and are trying to put their money someplace that's relatively safe.

I mean, if we got into the Way Back Machine in the late 80s, don't you remember the Japanese doing precisely the same thing, purchasing American property right and left, right before their real estate bust? Personally, I think the surge of investment from both the Chinese and the Europeans is a pretty good thing, and not really fodder for xenophobic nonsense.
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Old 07-02-2012, 12:50 AM
 
3,765 posts, read 4,396,946 times
Reputation: 2517
If Lennar is merely borrowing the money then Chinese interests arent buying anything, unless they fully expect it to go under. In any event why is this news? Chinese money finds its way into American banks capital which gets loaned out, but this is not buying anything. Until you hear these are joint EQUITY ventures a Chinese loan is merely just a way to diversify risk away from overexposure to home markets.
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Old 07-02-2012, 01:10 AM
 
455 posts, read 640,762 times
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They are just lending money. If the development goes bust, then china's investors might be left holding the bag.
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Old 07-02-2012, 01:29 PM
 
Location: Chicago
2,172 posts, read 2,374,228 times
Reputation: 2155
The article title and the title of this thread are completely deceiving and are not an accurate representation of what is actually happening in the article. They are just offering a financial investment loan to the developers. They assume all of the risk, so they should get all of the returns. I am sure American investors would be interested and go in on this deal IF its really a good idea. This has been happening for years and years, nothing new.
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Old 07-07-2012, 02:51 AM
 
479 posts, read 403,474 times
Reputation: 438
China now owns IMAX/AMC. So it's not just real estate...

The more the US Government borrows from Asian, and other nations. The more capital they have to buy US assets.
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Old 07-07-2012, 04:33 AM
Status: "notary sojac" (set 16 days ago)
 
Location: then: U.S.A., now: Europe
6,321 posts, read 5,605,588 times
Reputation: 10827
Quote:
Originally Posted by John1960 View Post
Look Who's Buying America Now!

According to The Wall Street Journal, the most popular story on WSJ.com on Monday was a report about how Lennar (LEN) may apply for a $1.7 billion loan from China to help finance major multifamily housing developments in San Francisco.

Valued at $10.5 billion in total, the projects to reincarnate two former Pacific Coast naval bases as mixed-use residential and commercial real estate have run aground over lack of funds. As a result, Lennar appears poised to open the door to China owning an interest in a big chunk of prime U.S. beachfront real estate. And that's just the start.

Look Who's Buying America Now! - DailyFinance
It's not like American investors haven't taken over some of the greatest beach front property in the Caribean and Central America. If the Yankee dollar can buy up beach front property in Mexico and Central America, why not the Chinese yuan buying it up in America when they get the chance.

As far as business investors are concerned: It's about making money, not what flag you're waving.
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