Why US and European Govts and Central Bankers are sooooo worried

We havent blogged much on the financial crisis because it isnt an area that we feel equipped to pass wisdom on but it strikes us that Robert Peston's (BBC Business Ed) piece below is the truest reflection of not only the extent of the problem but the seriousness of its consequences. This is why Govt and Central bankers are moving heaven and earth to put a stop to this thing.

China could easily end up owning the lion’s share of the US and UK’s financial systems. - Robert Peston, BBC

With the collapses on Wall Street this week and signs in the United Kingdom pointing towards a housing market crisis as well, it appears that the U.S. and the U.K. have left the door open for other world economies to step in and take over the global economy. Peston reports: “It's a world in which the Chinese state, if it co-ordinated the investments of its cash-rich institutions, could end up owning more-or-less the entire financial system of the US and the UK.” It is conservative institutions, he says, and those with simpler business models with a history of careful management of their funding sources, which will become the new superpowers.