There will likely be a near term deglobalization that will occur due to this financial meltdown. Take JA Solar out of China: last summer, they bought $100M in bonds at the urging of their Lehman bankers. Now, they have written off the entire $100M, and its stock is down 66% since Lehman filed for bankruptcy. The consequence: they will now keep their financial investments and assets at home -- "For the near future, we are quite comfortable with Chinese banks, they are backed by the Chinese government", says their CFO, Anthea Chung. [business week, may 18th]
This trend of capital flight back to originating countries will only increase in the near term with firms still staggerring from their US losses. Couple this with the tight US consumer market and foreign geographies look even more pragmatic for investment in funds and talent.
Look to see
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