New Banking Strategy - Micro financing vs Too big to fail

Despite the economic downturn, microfinance pioneer Grameen Bank continues to report nearly 100% payback rates for its loans to the very poor.

This bank, started by Nobel Prizer winner Muhammad Yunus, lends to people with zero credit, no collateral, and extremely low levels of income.

Aren't the poorest mass-defaulting due to recent economic hardship? Not at all.

AP: "We have now shown that the poorest of the poor can be creditworthy," he said in an interview with The Associated Press during a recent trip to Bangkok. "Our loan repayments are as high as ever."

One part of Grameen's success is that it involves many members of the same social group when approving and monitoring loans, increasing the social cost of default for the borrower. It also turns many borrowers into shareholders.

A group of five prospective borrowers from similar social and economic positions come together to determine an appropriate loan for each.The request then goes before a larger council of borrowers, who are also shareholders in the bank, and finally to the bank for approval."

Furthermore, the bank focuses on lending for productive assets, rather than for mere consumption or asset speculation. How amazingly obvious this bank's principles sound in retrospect.

Grameen also has been successful because it's grounded in what he calls "the real economy," rather than "fantasy economy" of ever-climbing asset prices. A loan for a goat, for example, produces tangible benefits that can support a family. "The closer you are to the real economy, the safer you are," he said.

While not everything could be scaled-up and applied to large traditional banks -- in doing so, you'd likely lose a lot of what makes this work -- the underlying concepts should be taken to heart.

Bailout Just failed - Peter Boettke

The long run inflationary consequences of the bailouts of our financial system has sent us on a path of national ruin, famed economist Peter Boettke argues.

Despite the short term gains in the stock market and what looks like the start of an economic recovery, the cycle of debt, deficits and government expansion will be economically crippling, he says

From Boettke:

If what the bailout and shift in both the traditional role of the Fed and Treasury perform have done is unleash this cycle of deficits, debt and debasement rather than constrain it (as it obviously has done!), then we have sent our national economic policies on a path of ruin that may well set us back for decades…
Government activism isn't the cure for the crisis, it is the cause.

Boettke says the Fed’s quantitative easing is a mistake because it is preventing market adjustments guided by relative pricing. What’s more, the government’s actions were predicated on the idea that we were experiencing a liquidity crisis when what we were really going through a solvency crisis. And the ad-hoc way the policies were created led to "regime uncertainty" as markets tried to guess what the government would do.

Here's how Boettke puts it:

Basic data presented by the Minn Fed, as well as discussed by Bob Higgs as well as Jeff Miron, Casey Mulligan and John Cochrane on issues related to liquidity, regime uncertainty, unemplyment composition, problems of moral hazard, effectiveness of fiscal policy, etc. have all at various times seemed to call into question the entire policy rationale used by economists and government officials. I am willing to be convinced that these empirical points are indeed wrong, but I have not been presented with such counter-claims on the data. Instead of critical engagement of the contending positions, we often just get in the blogosphere the separate claims presented. And in the instances where "debate" has in fact been encouraged --- such as the discussion between Brad de Long and Luigi Zingales, I found Zingales the more convincing presentation of economic argument.

Bottom-line, I don't believe we have seen a crisis of confidence, but instead a crisis of insolvency compounded by regime uncertainty caused by government's activism. In other words, we didn't have a credit lock-up a year ago due to liquidity issues, we had a credit lock-up due to regime uncertainty brought on by government decisions on who to bailout and who not to bailout for their bad decisions. Resources needed to be reallocated guided by price adjustment to bring production plans into alignment with consumption demands. Bailouts prevent the needed adjustments.

So not only am I dubious that the monetary policy the Fed has engaged in over the past year has been productive, I am extremely dubious that its expanded role beyond monetary policy in the economy. In fact, the dangers for the economy are significant, and as even discussed recently on both Tyler and my blog, the lack of a credible exit strategy makes it even more troublesome (remember those long-run consequences).

US Postal service stop using dollar for its international transactions

The U.S. Postal Service is valuing its international transactions no longer in the U.S. dollar but in the accepted "currency" of the International Monetary Fund, Special Drawing Rights (SDRs). China, Russia, Brazil and India are calling for a new world currency due to our rising debt and falling dollar. Russian President Dmitry Medvedev pulled the newly minted gold Euro-dollar (valued at $3,900) from his pocket at the G-8 summit in July declaring it the future world currency.
here is link to usps website explaining SDR
Have we, the people, considered what the consequences to our economy will be if we are no longer able to print money to pay our debts but instead have to buy the accepted world currency? Let's add $1.2 trillion in health care costs to our debt. Let's keep spending. That ought to take care of it. Wake up, America.

Here is yesterdays Reuters article summarizes the agenda for next month G-20 meeting in London where Russia as third largest reserve currency holder still chanting the need for Global single currency.

as per Reuters

China and Russia -- which hold, respectively, the worlds first and third biggest reserves -- have suggested that a new global currency could be based on the International Monetary Fund's Special Drawing Rights (SDRs).

IMF officials have said that in theory such a move could be possible, but it would take a long time. The SDRs are the IMF's unit of account, their value is based on a basket of currencies including the dollar, Japanese yen, British pound and euro.

Major emerging market economies, such as Russia, would like to see the SDR basket widened to include their national currencies and possibly other assets such as gold.

Canada's Looming Banking crisis - Bank of Montreal may be gone

Dan Amos - who called the crash of Lehman and other giants beforehand - says that a major bank is lying about its ability to pay shareholder dividends, has been gaming its books, and is about to crash.

Amos doesn't say which bank he's talking about, but gives the following hint:


[It has] a 192 year old history and 37,000 employees . . .


A quick Google search reveals that this can only be the Bank of Montreal, also known as BMO Financial Group.

Stock Gum Shoe - a website devoted to guessing at the companies hinted at in stock tips - confirms that Amos was talking about Bank of Montreal.


This is newsworthy because the Canadian banks have widely been seen as the world's safest and most stable banks. Indeed, the Bank of Montreal was listed as the 33rd safest bank in the world by Global Finance.

Amos says that the Bank of Montreal won't be able to pay the promised $1.5 billion dividend scheduled later this year, which will precipitate a crash in BMO's stock by December.

washingtonsblog

Great American Sell off - Companies that aren't American anymore

Between 01/01/08 and 07/24/09 total 615 companies sold to foregn entity, below list of few names


List Of American Companies Sold To Foreign Interests
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Millennium Pharmaceuticals Inc
Foreign Acquiror: Mahogany Acquisition Corp [Takeda Pharmaceutical Co Ltd]
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $8,734,094,727
Date Acquired: 05/14/08
State of US Company: Massachusetts
US Company Business Description: Biopharma co
US Company Industry: Drugs


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Commerce Bancorp,New Jersey
Foreign Acquiror: Toronto-Dominion Bank
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $8,638,206,055
Date Acquired: 03/31/08
State of US Company: New Jersey
US Company Business Description: Coml bank
US Company Industry: Commercial Banks, Bank Holding Companies


--------------------------------------------------------------------------------

NAVTEQ Corp
Foreign Acquiror: Nokia Oyj
Foreign Acquiring Country:: Finland
US Dollar Amount of Acquisition: $7,953,590,820
Date Acquired: 07/10/08
State of US Company: Illinois
US Company Business Description: Dvlp digital mapping software
US Company Industry: Prepackaged Software


--------------------------------------------------------------------------------

MidCon Corp [Knight Holdco LLC]
Foreign Acquiror: Investor Group
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $6,575,000,000
Date Acquired: 02/18/08
State of US Company: Illinois
US Company Business Description: Pvd gas transmission svcs
US Company Industry: Electric, Gas, and Water Distribution


--------------------------------------------------------------------------------

Business Objects SA
Foreign Acquiror: SAP AG
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $5,510,991,211
Date Acquired: 01/15/08
State of US Company: California
US Company Business Description: Dvlp software
US Company Industry: Prepackaged Software


--------------------------------------------------------------------------------

Respironics Inc
Foreign Acquiror: Koninklijke Philips Electronic
Foreign Acquiring Country:: Netherlands
US Dollar Amount of Acquisition: $5,349,126,953
Date Acquired: 03/14/08
State of US Company: Pennsylvania
US Company Business Description: Mnfr,whl med equip
US Company Industry: Measuring, Medical, Photo Equipment; Clocks


--------------------------------------------------------------------------------

Ventana Medical Systems Inc
Foreign Acquiror: Roche Holding AG
Foreign Acquiring Country:: Switzerland
US Dollar Amount of Acquisition: $3,665,414,062
Date Acquired: 02/19/08
State of US Company: Arizona
US Company Business Description: Mnfr,whl surgical,med equip
US Company Industry: Measuring, Medical, Photo Equipment; Clocks


--------------------------------------------------------------------------------

MGI PHARMA Inc
Foreign Acquiror: Jaguar Acquisition Corp [Eisai Co Ltd]
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $3,557,320,068
Date Acquired: 01/25/08
State of US Company: Minnesota
US Company Business Description: Mnfr pharm
US Company Industry: Drugs


--------------------------------------------------------------------------------

Genlyte Group Inc
Foreign Acquiror: Philips Holding USA Inc [Koninklijke Philips Electronic]
Foreign Acquiring Country:: Netherlands
US Dollar Amount of Acquisition: $2,810,249,023
Date Acquired: 01/28/08
State of US Company: Kentucky
US Company Business Description: Mnfr,whl lighting fixtures
US Company Industry: Electronic and Electrical Equipment


--------------------------------------------------------------------------------

Alcoa Inc-Packaging & Consumer [Alcoa Inc]
Foreign Acquiror: Rank Group Ltd
Foreign Acquiring Country:: New Zealand
US Dollar Amount of Acquisition: $2,700,000,000


UAP Holding Corp
Foreign Acquiror: Agrium Inc
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $2,624,266,113


--------------------------------------------------------------------------------

Molson Coors Brewing Co-US & [Molson Coors Brewing Co]
Foreign Acquiror: SABMiller PLC-US & Puerto Rico [SABMiller PLC]
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $2,600,000,000


--------------------------------------------------------------------------------

Combined Ins Co of America [Aon Corp]
Foreign Acquiror: ACE Ltd
Foreign Acquiring Country:: Bermuda
US Dollar Amount of Acquisition: $2,400,000,000


--------------------------------------------------------------------------------

SunCom Wireless Holdings Inc
Foreign Acquiror: T-Mobile USA Inc [Deutsche Telekom AG]
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $2,399,177,979


--------------------------------------------------------------------------------

Commerce Group Inc
Foreign Acquiror: Corporacion Mapfre SA
Foreign Acquiring Country:: Spain
US Dollar Amount of Acquisition: $2,316,628,906


--------------------------------------------------------------------------------

Adams Respiratory Therapeutics
Foreign Acquiror: Reckitt Benckiser PLC
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $2,267,159,912


--------------------------------------------------------------------------------

Quanex Corp
Foreign Acquiror: Gerdau SA
Foreign Acquiring Country:: Brazil
US Dollar Amount of Acquisition: $1,749,206,055


--------------------------------------------------------------------------------

TimberStar-900,000 Acre Port [iStar Financial Inc]
Foreign Acquiror: Hancock Timber Resource Grp [Manulife Financial Corp]
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $1,710,000,000


--------------------------------------------------------------------------------

Alabama Natl BanCorp,AL
Foreign Acquiror: RBC Centura Banks Inc [Royal Bank of Canada]
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $1,641,642,944


--------------------------------------------------------------------------------

Metal Management Inc
Foreign Acquiror: Sims Group Ltd
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $1,514,666,992


TAP Pharmaceutical Products [Abbott Laboratories Inc]
Foreign Acquiror: Takeda Pharmaceutical Co Ltd
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $1,500,000,000


--------------------------------------------------------------------------------

Consolidated Edison-Gen Proj [Consolidated Edison Inc]
Foreign Acquiror: North American Energy Alliance [Allco Finance Group Ltd]
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $1,477,000,000


--------------------------------------------------------------------------------

Sempra Commodities [Sempra Energy Inc]
Foreign Acquiror: RBS
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $1,350,000,000


--------------------------------------------------------------------------------

Midland Co
Foreign Acquiror: Munich Re
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $1,324,656,006


--------------------------------------------------------------------------------

Intel Corp-NOR Assets [Intel Corp]
Foreign Acquiror: STMicroelectronics NV-Flash [STMicroelectronics NV]
Foreign Acquiring Country:: Switzerland
US Dollar Amount of Acquisition: $1,073,810,059


--------------------------------------------------------------------------------

General Chemical Industrial [Harbert Management Corp]
Foreign Acquiror: Tata Chemicals Ltd
Foreign Acquiring Country:: India
US Dollar Amount of Acquisition: $1,005,000,000


--------------------------------------------------------------------------------

American Stock Transfer
Foreign Acquiror: Pacific Equity Partners
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $1,000,000,000


--------------------------------------------------------------------------------

CitiStreet LLC [Citigroup Inc]
Foreign Acquiror: ING Groep NV
Foreign Acquiring Country:: Netherlands
US Dollar Amount of Acquisition: $900,000,000


--------------------------------------------------------------------------------

Robertson's Ready Mix Ltd
Foreign Acquiror: MCC Development Corp [Mitsubishi Materials Corp]
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $900,000,000


--------------------------------------------------------------------------------

Godiva Chocolatier Inc [Campbell Soup Co]
Foreign Acquiror: Yildiz Holding AS
Foreign Acquiring Country:: Turkey
US Dollar Amount of Acquisition: $850,000,000


Citigroup Inc-Loan Portfolio [Citigroup Inc]
Foreign Acquiror: Undisclosed Acquiror
Foreign Acquiring Country:: Unknown
US Dollar Amount of Acquisition: $840,000,000


--------------------------------------------------------------------------------

American Express Bank Ltd [American Express Co]
Foreign Acquiror: Standard Chartered PLC
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $823,000,000


--------------------------------------------------------------------------------

Grant PrideCo Inc-Tubular Buss [Grant PrideCo Inc]
Foreign Acquiror: Vallourec SA
Foreign Acquiring Country:: France
US Dollar Amount of Acquisition: $800,000,000
Date Acquired: 05/05/08
State of US Company: Texas
US Company Business Description: Mnfr,whl oil drilling mach
US Company Industry: Machinery


--------------------------------------------------------------------------------

Great Western Bancorp,Omaha,NE
Foreign Acquiror: National Australia Bank Ltd
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $798,000,000
Date Acquired: 06/04/08
State of US Company: Nebraska
US Company Business Description: Comml bk hldg co
US Company Industry: Commercial Banks, Bank Holding Companies


--------------------------------------------------------------------------------

Savvian LLC
Foreign Acquiror: GCA Holdings Corp [GCA Savvian Group Corp]
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $780,000,000
Date Acquired: 03/03/08
State of US Company: California
US Company Business Description: Pvd invest advisory svcs
US Company Industry: Investment & Commodity Firms,Dealers,Exchanges


--------------------------------------------------------------------------------

El Paso Expl & Prodn Co- [El Paso Corp]
Foreign Acquiror: Undisclosed Acquiror
Foreign Acquiring Country:: Unknown
US Dollar Amount of Acquisition: $752,000,000
Date Acquired: 03/25/08
State of US Company: Texas
US Company Business Description: Oil,gas expl,prodn
US Company Industry: Oil and Gas; Petroleum Refining


--------------------------------------------------------------------------------

Boston Scientific-Surgery Bus [Boston Scientific Corp]
Foreign Acquiror: Getinge AB
Foreign Acquiring Country:: Sweden
US Dollar Amount of Acquisition: $750,000,000
Date Acquired: 01/07/08
State of US Company: Delaware
US Company Business Description: Mnfr,whl med devices
US Company Industry: Measuring, Medical, Photo Equipment; Clocks


--------------------------------------------------------------------------------

Sirtris Pharmaceuticals Inc
Foreign Acquiror: GlaxoSmithKline PLC
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $715,583,984
Date Acquired: 06/02/08
State of US Company: Massachusetts
US Company Business Description: Biopharmaceutical co
US Company Industry: Drugs


--------------------------------------------------------------------------------

LS Power Grp-Power Plant,TX [LS Power Group]
Foreign Acquiror: Arcapita Inc [Arcapita Bank BSC]
Foreign Acquiring Country:: Bahrain
US Dollar Amount of Acquisition: $695,000,000
Date Acquired: 01/30/08
State of US Company: Texas
US Company Business Description: Electric utility
US Company Industry: Electric, Gas, and Water Distribution


--------------------------------------------------------------------------------

Lighthouse Investment Partners
Foreign Acquiror: HFA Holdings Ltd [Suncorp-Metway Ltd]
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $624,567,017
Date Acquired: 01/03/08
State of US Company: Colorado
US Company Business Description: RE invest firm
US Company Industry: Investment & Commodity Firms,Dealers,Exchanges


Developers Diversified Realty- [Developers Diversified Realty]
Foreign Acquiror: Undisclosed Acquiror
Foreign Acquiring Country:: Unknown
US Dollar Amount of Acquisition: $603,000,000
Date Acquired: 05/15/08
State of US Company: Colorado
US Company Business Description: Own,op shopping centers
US Company Industry: Real Estate; Mortgage Bankers and Brokers


--------------------------------------------------------------------------------

Oglebay Norton Co
Foreign Acquiror: Carmeuse North America [LVI Holding Corp]
Foreign Acquiring Country:: Netherlands
US Dollar Amount of Acquisition: $520,299,988
Date Acquired: 02/14/08
State of US Company: Ohio
US Company Business Description: Limestone mining co
US Company Industry: Mining


--------------------------------------------------------------------------------

Reliant Energy Inc-Channelview [Reliant Energy Inc]
Foreign Acquiror: GIM Channelview Cogeneration
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $500,000,000
Date Acquired: 07/09/08
State of US Company: Texas
US Company Business Description: Cogeneration facility
US Company Industry: Electric, Gas, and Water Distribution


--------------------------------------------------------------------------------

Excelerate Energy LLC
Foreign Acquiror: RWE AG
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $500,000,000
Date Acquired: 06/02/08
State of US Company: Texas
US Company Business Description: Pvd LNG distn svcs
US Company Industry: Electric, Gas, and Water Distribution


--------------------------------------------------------------------------------

American Home-Mtg Bus [American Home Mortgage Invest]
Foreign Acquiror: AH Mortgage Acquisition Co [Invesco PLC]
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $500,000,000
Date Acquired: 04/11/08
State of US Company: New York
US Company Business Description: Mortgage servicing business
US Company Industry: Real Estate; Mortgage Bankers and Brokers


--------------------------------------------------------------------------------

Little River Golf & Resort,NC
Foreign Acquiror: Oceanico Group
Foreign Acquiring Country:: Portugal
US Dollar Amount of Acquisition: $500,000,000
Date Acquired: 01/03/08
State of US Company: North Carolina
US Company Business Description: Own,op hotels
US Company Industry: Hotels and Casinos


--------------------------------------------------------------------------------

Sauer-Danfoss Inc
Foreign Acquiror: Danfoss A/S
Foreign Acquiring Country:: Denmark
US Dollar Amount of Acquisition: $493,046,997
Date Acquired: 07/11/08
State of US Company: Iowa
US Company Business Description: Mnfr fluid power pumps,motors
US Company Industry: Machinery


--------------------------------------------------------------------------------

Business Objects SA
Foreign Acquiror: SAP AG
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $487,924,011
Date Acquired: 01/29/08
State of US Company: California
US Company Business Description: Dvlp software
US Company Industry: Prepackaged Software


--------------------------------------------------------------------------------

Valero Energy Corp-Krotz [Valero Energy Corp]
Foreign Acquiror: Alon USA Energy Inc [Dor Alon Energy In Israel]
Foreign Acquiring Country:: Israel
US Dollar Amount of Acquisition: $433,000,000
Date Acquired: 07/07/08
State of US Company: Louisiana
US Company Business Description: Mnfr,whl petro prod
US Company Industry: Oil and Gas; Petroleum Refining


--------------------------------------------------------------------------------

Visicu Inc
Foreign Acquiror: Koninklijke Philips Electronic
Foreign Acquiring Country:: Netherlands
US Dollar Amount of Acquisition: $431,364,990
Date Acquired: 02/20/08
State of US Company: Maryland
US Company Business Description: Dvlp software
US Company Industry: Prepackaged Software


CollaGenex Pharmaceuticals Inc
Foreign Acquiror: Galderma Laboratories LP [Nestle SA]
Foreign Acquiring Country:: Switzerland
US Dollar Amount of Acquisition: $419,557,007
Date Acquired: 04/11/08
State of US Company: Pennsylvania
US Company Business Description: Mnfr pharm
US Company Industry: Drugs


--------------------------------------------------------------------------------

SPARTA Inc
Foreign Acquiror: Cobham PLC
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $416,000,000
Date Acquired: 06/04/08
State of US Company: Alabama
US Company Business Description: Pvd engineering svcs
US Company Industry: Business Services


--------------------------------------------------------------------------------

Claymont Steel Holdings Inc
Foreign Acquiror: Evraz Group SA
Foreign Acquiring Country:: Russian Fed
US Dollar Amount of Acquisition: $413,510,986
Date Acquired: 01/16/08
State of US Company: Delaware
US Company Business Description: Mnfr,whl steel plate
US Company Industry: Metal and Metal Products


--------------------------------------------------------------------------------

CoGenesys Inc
Foreign Acquiror: Teva Pharma Inds Ltd
Foreign Acquiring Country:: Israel
US Dollar Amount of Acquisition: $400,000,000
Date Acquired: 02/21/08
State of US Company: Maryland
US Company Business Description: Mnfr pharm
US Company Industry: Drugs


--------------------------------------------------------------------------------

Fontainebleau Resorts LLC
Foreign Acquiror: Nakheel Co PJSC [United Arab Emirates]
Foreign Acquiring Country:: Utd Arab Em
US Dollar Amount of Acquisition: $375,000,000
Date Acquired: 04/09/08
State of US Company: Florida
US Company Business Description: Own,op beach resort,hotel
US Company Industry: Hotels and Casinos


--------------------------------------------------------------------------------

WCI Steel Inc
Foreign Acquiror: OAO SeverStal
Foreign Acquiring Country:: Russian Fed
US Dollar Amount of Acquisition: $369,825,012
Date Acquired: 07/07/08
State of US Company: Ohio
US Company Business Description: Mnfr custom steel prod
US Company Industry: Metal and Metal Products


--------------------------------------------------------------------------------

MTC Technologies Inc
Foreign Acquiror: BAE Systems Inc [BAE Systems PLC]
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $364,088,013
Date Acquired: 06/09/08
State of US Company: Ohio
US Company Business Description: Pvd sys engineering svcs
US Company Industry: Business Services


--------------------------------------------------------------------------------

Possis Medical Inc
Foreign Acquiror: Medrad Inc [Bayer AG]
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $359,351,013
Date Acquired: 04/02/08
State of US Company: Minnesota
US Company Business Description: Mnfr med devices
US Company Industry: Measuring, Medical, Photo Equipment; Clocks


--------------------------------------------------------------------------------

Bentley Pharmaceuticals Inc
Foreign Acquiror: Teva Pharma Inds Ltd
Foreign Acquiring Country:: Israel
US Dollar Amount of Acquisition: $352,058,990
Date Acquired: 07/22/08
State of US Company: New Hampshire
US Company Business Description: Mnfr,whl pharm
US Company Industry: Drugs


--------------------------------------------------------------------------------

Sterling Life Insurance Co [Aon Corp]
Foreign Acquiror: Munich Re
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $352,000,000
Date Acquired: 04/01/08
State of US Company: Washington
US Company Business Description: Pvd ins,medicare svcs
US Company Industry: Insurance


GMH Military Housing [GMH Communities Trust]
Foreign Acquiror: Balfour Beatty PLC
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $350,500,000
Date Acquired: 04/30/08
State of US Company: Pennsylvania
US Company Business Description: Pvd housing svcs
US Company Industry: Construction Firms


--------------------------------------------------------------------------------

PlantCML [Golden Gate Capital]
Foreign Acquiror: EADS North America [EADS NV]
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $350,000,000
Date Acquired: 04/22/08
State of US Company: California
US Company Business Description: Pvd software dvlp svcs
US Company Industry: Prepackaged Software


--------------------------------------------------------------------------------

Analog Devices Inc-Cellular [Analog Devices Inc]
Foreign Acquiror: MediaTek Inc
Foreign Acquiring Country:: Taiwan
US Dollar Amount of Acquisition: $350,000,000
Date Acquired: 01/11/08
State of US Company: Massachusetts
US Company Business Description: Mnfr semiconductors
US Company Industry: Electronic and Electrical Equipment


--------------------------------------------------------------------------------

Bradley Pharmaceuticals Inc
Foreign Acquiror: Nycomed US Inc [Nycomed Intl Mgmt GmbH]
Foreign Acquiring Country:: Switzerland
US Dollar Amount of Acquisition: $349,420,990
Date Acquired: 02/21/08
State of US Company: New Jersey
US Company Business Description: Mnfr,whl pharm
US Company Industry: Drugs


--------------------------------------------------------------------------------

Genesis Microchip Inc
Foreign Acquiror: STMicroelectronics NV
Foreign Acquiring Country:: Switzerland
US Dollar Amount of Acquisition: $324,130,005
Date Acquired: 01/28/08
State of US Company: California
US Company Business Description: Mnfr,whl integrated circuits
US Company Industry: Electronic and Electrical Equipment


--------------------------------------------------------------------------------

Nonnis Food Co [Wind Point Partners]
Foreign Acquiror: Vivartia SA
Foreign Acquiring Country:: Greece
US Dollar Amount of Acquisition: $320,000,000
Date Acquired: 04/02/08
State of US Company: Oklahoma
US Company Business Description: Produce,ret biscuits
US Company Industry: Food and Kindred Products


--------------------------------------------------------------------------------

Strategic Energy LLC [Great Plains Energy Inc]
Foreign Acquiror: Direct Energy Marketing Ltd [Centrica PLC]
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $300,000,000
Date Acquired: 06/02/08
State of US Company: Pennsylvania
US Company Business Description: Whl,ret elec solutions
US Company Industry: Wholesale Trade-Durable Goods


--------------------------------------------------------------------------------

US Zinc Corp [TPG Capital LP]
Foreign Acquiror: Votorantim Metais Ltda [Grupo Votorantim]
Foreign Acquiring Country:: Brazil
US Dollar Amount of Acquisition: $295,000,000
Date Acquired: 01/11/08
State of US Company: Texas
US Company Business Description: Mnfr zinc oxide,dust
US Company Industry: Metal and Metal Products


--------------------------------------------------------------------------------

Business Objects SA
Foreign Acquiror: SAP AG
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $277,671,997
Date Acquired: 02/18/08
State of US Company: California
US Company Business Description: Dvlp software
US Company Industry: Prepackaged Software


--------------------------------------------------------------------------------

Air Products Polymers LP [Air Products & Chems Inc]
Foreign Acquiror: Wacker Chemie AG
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $265,000,000
Date Acquired: 02/01/08
State of US Company: Pennsylvania
US Company Business Description: Mnfr latex ploymers
US Company Industry: Chemicals and Allied Products


Gracenote Inc
Foreign Acquiror: Sony Corp of America [Sony Corp]
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $260,000,000
Date Acquired: 06/02/08
State of US Company: California
US Company Business Description: Pvd embedded tech svcs
US Company Industry: Business Services


--------------------------------------------------------------------------------

PDL Biopharma Inc-Antibody [PDL Biopharma Inc]
Foreign Acquiror: Genmab AS
Foreign Acquiring Country:: Denmark
US Dollar Amount of Acquisition: $240,000,000
Date Acquired: 03/13/08
State of US Company: Minnesota
US Company Business Description: Mnfr pharm
US Company Industry: Drugs


--------------------------------------------------------------------------------

E-Z-EM Inc
Foreign Acquiror: Bracco Diagnostics Inc [Bracco SpA]
Foreign Acquiring Country:: Italy
US Dollar Amount of Acquisition: $230,507,996
Date Acquired: 04/01/08
State of US Company: New York
US Company Business Description: Mnfr med imaging prod
US Company Industry: Measuring, Medical, Photo Equipment; Clocks


--------------------------------------------------------------------------------

Davy Crockett Gas Co LLC
Foreign Acquiror: Emvelco Corp [Koninklijke KPN NV]
Foreign Acquiring Country:: Netherlands
US Dollar Amount of Acquisition: $225,000,000
Date Acquired: 05/01/08
State of US Company: Delaware
US Company Business Description: Oil,gas expl
US Company Industry: Oil and Gas; Petroleum Refining


--------------------------------------------------------------------------------

NiSource Inc-Eenergy Plant [NiSource Inc]
Foreign Acquiror: BP Alternative Energy Ltd [BP PLC]
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $210,000,000
Date Acquired: 07/01/08
State of US Company: Indiana
US Company Business Description: Elec,gas,water utility
US Company Industry: Electric, Gas, and Water Distribution


--------------------------------------------------------------------------------

Datascope Corp-Patient Monitor [Datascope Corp]
Foreign Acquiror: Mindray Medical Intl Ltd
Foreign Acquiring Country:: China
US Dollar Amount of Acquisition: $209,000,000
Date Acquired: 05/15/08
State of US Company: New Jersey
US Company Business Description: Mnfr surgical,med instr
US Company Industry: Measuring, Medical, Photo Equipment; Clocks


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Blackstone Group LP-Hotels(4) [Blackstone Group LP]
Foreign Acquiror: Undisclosed Joint Venture [Harte Holdings]
Foreign Acquiring Country:: Ireland-Rep
US Dollar Amount of Acquisition: $207,800,003
Date Acquired: 02/06/08
State of US Company: Pennsylvania
US Company Business Description: Own,op hotels
US Company Industry: Hotels and Casinos


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PDL Biopharma Inc-IV Busulfex [PDL Biopharma Inc]
Foreign Acquiror: Otsuka Pharmaceutical Co Ltd
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $200,000,000
Date Acquired: 03/10/08
State of US Company: California
US Company Business Description: IV Busulfex asts
US Company Industry: Business Services


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Reveille Productions
Foreign Acquiror: Shine Group
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $200,000,000
Date Acquired: 02/14/08
State of US Company: California
US Company Business Description: Pvd tv,motion picture prodn
US Company Industry: Amusement and Recreation Services


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Cannondale Bicycle Corp [Pegasus Partners II LP]
Foreign Acquiror: Dorel Industries Inc
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $200,000,000
Date Acquired: 02/04/08
State of US Company: Connecticut
US Company Business Description: Mnfr bicycles,accessories
US Company Industry: Transportation Equipment


Ozaukee Bank,Cedarburg,WI
Foreign Acquiror: Bank of Montreal,Ontario,CA
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $198,360,001
Date Acquired: 03/03/08
State of US Company: Wisconsin
US Company Business Description: Coml bk
US Company Industry: Commercial Banks, Bank Holding Companies


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Entrada Oil Field [Callon Petroleum Co]
Foreign Acquiror: CIECO Energy (US) Ltd [ITOCHU Corp]
Foreign Acquiring Country:: Japan
US Dollar Amount of Acquisition: $195,000,000
Date Acquired: 04/08/08
State of US Company: Texas
US Company Business Description: Oil,gas field
US Company Industry: Oil and Gas; Petroleum Refining


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GFI Oil & Gas Corp
Foreign Acquiror: Salamander Energy PLC
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $186,938,995
Date Acquired: 03/17/08
State of US Company: Texas
US Company Business Description: Oil,gas expl,prodn
US Company Industry: Oil and Gas; Petroleum Refining


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Denbury Resources Inc-Gas Asts [Denbury Resources Inc]
Foreign Acquiror: Undisclosed Acquiror
Foreign Acquiring Country:: Unknown
US Dollar Amount of Acquisition: $180,000,000
Date Acquired: 02/21/08
State of US Company: Louisiana
US Company Business Description: Natural gas asts
US Company Industry: Oil and Gas; Petroleum Refining


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Quadra Realty Trust Inc
Foreign Acquiror: Hypo Real Estate Capital Corp [Hypo Real Estate Holding AG]
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $178,912,003
Date Acquired: 03/13/08
State of US Company: New York
US Company Business Description: Re invest tr
US Company Industry: Investment & Commodity Firms,Dealers,Exchanges


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Ritz-Carlton Huntington Hotel
Foreign Acquiror: Great Eagle Holdings Ltd
Foreign Acquiring Country:: Hong Kong
US Dollar Amount of Acquisition: $170,000,000
Date Acquired: 01/08/08
State of US Company: California
US Company Business Description: Own,op hotel
US Company Industry: Hotels and Casinos


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AppTec Laboratory Services Inc
Foreign Acquiror: WuXi PharmaTech(Cayman)Inc
Foreign Acquiring Country:: China
US Dollar Amount of Acquisition: $162,699,997
Date Acquired: 01/31/08
State of US Company: Minnesota
US Company Business Description: Pvd lab testing svcs
US Company Industry: Health Services


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Alto Dairy Cooperative
Foreign Acquiror: Saputo Inc
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $160,000,000
Date Acquired: 04/01/08
State of US Company: Wisconsin
US Company Business Description: Produce,whl dairy prod
US Company Industry: Retail Trade-Food Stores


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Chesapeake Publishing-Asts(22) [Chesapeake Publishing Corp]
Foreign Acquiror: American Consolidated Media [Macquarie Media Group]
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $159,500,000
Date Acquired: 01/09/08
State of US Company: Maryland
US Company Business Description: Publishing asts
US Company Industry: Printing, Publishing, and Allied Services


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Adema Technologies Inc
Foreign Acquiror: Investor Group
Foreign Acquiring Country:: Taiwan
US Dollar Amount of Acquisition: $155,432,007
Date Acquired: 01/23/08
State of US Company: California
US Company Business Description: Mnfr ingots,wafers
US Company Industry: Electronic and Electrical Equipment


Univision Music Group [Umbrella Holdings LLC]
Foreign Acquiror: Universal Music Group [Vivendi SA]
Foreign Acquiring Country:: France
US Dollar Amount of Acquisition: $153,000,000
Date Acquired: 05/05/08
State of US Company: California
US Company Business Description: Pvd music recording svcs
US Company Industry: Business Services


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Tysons Dulles Plaza Office [Vornado Realty Trust]
Foreign Acquiror: Undisclosed Acquiror
Foreign Acquiring Country:: Unknown
US Dollar Amount of Acquisition: $152,800,003
Date Acquired: 06/10/08
State of US Company: Virginia
US Company Business Description: Own,op office bldg
US Company Industry: Real Estate; Mortgage Bankers and Brokers


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Century Steel Inc
Foreign Acquiror: Pacific Coast Steel [Gerdau SA]
Foreign Acquiring Country:: Brazil
US Dollar Amount of Acquisition: $151,500,000
Date Acquired: 04/02/08
State of US Company: Nevada
US Company Business Description: Mnfr structural steel prod
US Company Industry: Metal and Metal Products


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American Radiology Svcs Inc [Advent International Corp]
Foreign Acquiror: CML HealthCare Income Fund
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $151,000,000
Date Acquired: 03/01/08
State of US Company: Maryland
US Company Business Description: Pvd diagnostic imaging svcs
US Company Industry: Health Services


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Compete Inc [Perficient Inc]
Foreign Acquiror: Taylor Nelson Sofres PLC
Foreign Acquiring Country:: United Kingdom
US Dollar Amount of Acquisition: $150,000,000
Date Acquired: 03/07/08
State of US Company: Massachusetts
US Company Business Description: Pvd online mktg svcs
US Company Industry: Business Services


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North Pointe Holdings Corp
Foreign Acquiror: QBE the Americas [QBE Insurance Group Ltd]
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $144,740,997
Date Acquired: 04/30/08
State of US Company: Michigan
US Company Business Description: Pvd ppty,casualty ins svcs
US Company Industry: Insurance


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Renovis Inc
Foreign Acquiror: Evotec AG
Foreign Acquiring Country:: Germany
US Dollar Amount of Acquisition: $141,445,999
Date Acquired: 05/02/08
State of US Company: California
US Company Business Description: Mnfr pharm
US Company Industry: Drugs


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Merchants,Mnfr Bancorp Inc,WI
Foreign Acquiror: Harris NA [Bank of Montreal,Ontario,CA]
Foreign Acquiring Country:: Canada
US Dollar Amount of Acquisition: $137,279,007
Date Acquired: 03/03/08
State of US Company: Wisconsin
US Company Business Description: Bk hldg co
US Company Industry: Commercial Banks, Bank Holding Companies


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Pacific Energy Resources-Asts [Pacific Energy Resources Ltd]
Foreign Acquiror: Undisclosed Acquiror
Foreign Acquiring Country:: Unknown
US Dollar Amount of Acquisition: $135,000,000
Date Acquired: 05/01/08
State of US Company: California
US Company Business Description: Oil,gas expl,prodn
US Company Industry: Oil and Gas; Petroleum Refining


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Liberty Travel Inc
Foreign Acquiror: Flight Centre Ltd
Foreign Acquiring Country:: Australia
US Dollar Amount of Acquisition: $135,000,000
Date Acquired: 02/01/08
State of US Company: New Jersey
US Company Business Description: Pvd travel agency svcs
US Company Industry: Transportation and Shipping (except air)

China aggressively reducing us debt - Sign of things to come

The United States needs to borrow nearly $10 trillion over the next decade, including about $1.6 trillion this year.

Where's it going to come from?

This is critical question, because resistance on the part of creditors will drive up interest rates, clobbering the housing market and demolishing the value of whatever cash savings Americans have left. The other answer--our government lending the money to itself--will destroy the value of the dollar, and that wouldn't help too many people, either (except debtors--it would help debtors because they will be able to repay nominal debts with toilet-paper dollars.

For now, the money we're borrowing is coming from somewhere, thankfully. But it's not coming from China, which has funded our spending for most of the past decade. As you can see in the chart above from the NYT, China's absolute purchases of Treasury debt continued to rise through last year, but the percentage of our borrowing that China is funding is shrinking fast.

Here's Floyd Norris in the NYT:

China reduced its holdings of Treasury securities by $25 billion in June, the most China had ever sold in a month...

China and Hong Kong, which is reported separately but is combined under China in the accompanying graphic, together covered more than half of the increase in the amount of Treasuries sold to the public — that is, to buyers other than United States governme nt agencies like the Federal Reserve or Social Security — in 2006.

That share had fallen to 22 percent last year, when the government increased its public debt by a record $1.2 trillion. In the first half of 2009, China and Hong Kong acquired only 9 percent of the more than $800 billion worth of Treasuries that were sold.

Another Sellout to Foreigner - Spanish bank acquires Guaranty bank

BBVA, the Spanish bank, on Friday succeeded in its acquisition of Guaranty Financial, a struggling Texas bank with $13.5bn in assets, the Federal Deposit Insurance Corporation said.

The move makes Guaranty the 81st US bank to fail this year. BBVA agreed to buy $12bn of Guaranty’s assets, with the FDIC retaining the remaining $1.5bn. Spain’s second biggest bank will also assume Guaranty’s $12bn in deposits.


“BBVA Compass’s acquisition of all the deposits was the ‘least costly’ resolution for the FDIC’s deposit insurance fund compared to alternatives,” the FDIC said in a statement.

The Office of Thrift Supervision said on Friday that Guaranty bank was, “in an unsafe and unsound condition because of the deteriorating quality of its loan portfolio, critically deficient earnings, capital insolvency and strained liquidity position”.

The latest bank failure will cost the FDIC $3bn in insurance funds. Through the agreement, the FDIC and BBVA will share in the losses of a, $11bn pool of Guaranty’s assets.

People close to the matter said previously that Toronto Dominion and JPMorgan had also expressed interest in Guaranty, which garnered interest from other regional banks due to its presence in Texas. US Bancorp, the Minneapolis-based parent of US Bank, which has $266bn in assets, had been considered by people involved in the auction to be one of the other strong candidates.

BBVA had reason to be aggressive in attempting to buy banking assets in the southern US. The Spanish bank bought Compass Bancshares, which is based in Alabama, in 2007 for nearly $9.6bn and has since sought to expand its presence.

“Right now, it’s banking as usual,” Manolo Sánchez, BBVA Compass’ chief executive, told Guaranty customers on its website.

Guaranty had 103 branches in Texas and 59 in California. BBVA has 750 branches across seven states in the US and now has 421 in Texas.

Three smaller US banks also failed on Friday. Regulators shuttered Atlanta’s ebank; First Coweta, of Newman, Georgia; and CapitalSouth Bank in Alabama.

Guaranty’s fate has become intertwined in recent weeks with that of Colonial Bank, an Alabama-based bank that was forcibly closed last Friday and largely sold to BB&T, another regional bank, in an FDIC-backed deal.