China loves Blackstone's 'American Dream'

Market Watch ^ | 05/28/07 | Paul B. Farrell

[TigerLikesRooster]

PAUL B. FARRELL

China loves Blackstone's 'American Dream'

And Buffett warns about 'selling off the farm' to feed our addictions

By Paul B. Farrell, MarketWatch
Last Update: 6:30 PM ET May 28, 2007

ARROYO GRANDE, Calif. (MarketWatch) -- Remember America's so-called "ownership society?" Oh, you forgot that political rhetoric? Well, China didn't. It's cashing in on the "American Dream." Why? The country is tired of lending us megabucks to fund our mega trade deficits to indulge in our mega out-of-control addiction to their "stuff."

Warren Buffett warned us about this in Fortune several years ago. One of his famous folksy tales compared America to a farmer selling off his land to finance his high-on-the-hog lifestyle. Buffett offered a simple economic solution. But I'm getting ahead of myself ...

First why are we so out of control? Why, like addicts, can't we stop ourselves? And why are we trapped in this sinking feeling brilliantly described by Benjamin Barber, author of "Jihad vs. McWorld," writing in The American Conservative: Trapped in "a world of adolescents: children with consumer power and adults with the appetites of spoiled kids." Why is more never enough? Why do we want stuff now? Why forget tomorrow? We panicked about Dubai buying our ports. About China's bid for Unocal. We stopped them. Temporarily. But China kept taking our IOUs. Then Washington stopped saying "no" to selling equity. Our leaders are addicted too, addicted to foreign lenders funding our endless $600 billion annual trade deficits.

[GOPJ]

"High gas prices, stagnant wages, health-care costs going thru the roof. To top it off, I can't borrow against my house anymore because it's not appreciating. I'm finally feeling like I'm totally, completely tapped out ... Oh well ... time to go spend another $300 at the mall."

An unintended consequence of bowling alone...

[TopoGigio]

Doesn't Bush senior have a stake in Blackstone?

[khnyny]

bump for later read.

[sergeantdave]

So the author is telling us China is complaining because Americans buy Chicom fall-apart junk? Every Chicom product should come with duct tape, a tube of glue, two rubberbands and a free garbage can.