A Suddenly Nervous China Tells The US To " Earnestly Take Steps" To Avoid A Default

While the world's largest hedge fund, the Fed, may not care about the performance of its " bad bank" assets, and thus is largely ambivalent if the US Treasury defaults on the $2 trillion in US paper held by Ben Bernanke, others don't have the luxury of merely printing away any incurred MTM losses. Such as America's largest foreign creditor China, which at last check held at least $1.277 trillion in US Treasurys, which after realizing with a substantial delay that the US Congress is not precisely a " rational actor" and its bonds may be materially impaired in the case of a technical default, is starting to panic. In an oped in the largest media publication, China Daily, vice finance minister Zhu Guangyao, warned that the " clock is ticking" to avoid a US default that could hurt China's interests and the global economy. Mr Zhu said that China and the US are " inseparable" . Beijing is a huge investor in US Treasury bonds.Somehow we doubt Boehner or Obama are particularly concerned about what happens to " Chinese interests."   Of course, if China so wishes, it can pen an Op-Ed in the NYT and tell the US just what will happen if $1.3 trillion in US Treasurys were suddenly to be dumped in a liquidation fire sale.

Obama Reiterates - Will Only Negotiate After Getting Everything He Wants

Tech stocks crushed as debt deadline looms

Stocks had another bad day Tuesday as investors became increasingly nervous about a looming debt ceiling crisis.

World Markets

North and South American Indexes

	Index	Country	Change	% Change	Level	Last Update
	Dow Jones Industrial Average	United States	-159.71	-1.07%	14,776.53	4:31pm ET
	S& P 500 Index	United States	-20.67	-1.23%	1,655.45	4:31pm ET
	Brazil Bovespa Stock Index	Brazil	-104.66	-0.20%	52,312.44	6:01pm ET
	Canada S& P/TSX 60	Canada	-5.40	-0.74%	728.43	4:20pm ET
	Santiago Index IPSA	Chile	-2.56	-0.08%	3,235.03	3:15pm ET
	IPC	Mexico	-534.32	-1.32%	39,916.84	6:06pm ET