Explanations emerge

In the wake of the Bear Stearns meltdown yesterday, Bill Bonner wrote…

Little noticed in the Bear affair is the role
of Chinese investment firm, Citic. The Chinese were going to put up
some money to prop up Bear Stearns. There might be many explanations
for why the Citic deal didn't go forward, but here we suggest one that
is the most far-reaching: the foreigners are growing wary of the United

No doubt that's the case, but now an additional explanation has emerged, one that reminds us of something I pointed out a couple of months ago: sovereign wealth funds are creatures of governments, subject to all the idiocies of governments:

Analysts said that Citic narrowly avoided getting burnt in part because
of the long and laborious approval process imposed by Chinese
regulators who were yet to sign off on the deal.

(Hat tip Passport)

The Daily Reckoning