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Putting together the session. A great deal of interest to ge capital capital, and i think to any issuer who makes regular use of the bond markets. The whole question of liquidity and if it doesnt function as it should means the bond markets do not function efficiently. Representing issuers or the viewpoint, which is what im most familiar with, to the extent that the bond markets cease to be effective, more important, a source of capitol, which can be flexible in its form, and allows issuers like ge capitol to hedge its Balance Sheet risk. The reason i say that is concerns about liquidity, having impact on secondary Market Pricing and also on the new issue premium, which investors quite rightly and logically demand to take on in order to buy a new bond transaction. To the extent there is a disconnect in the market, and those issues are elevated. It translates 2krek9ly into a hi ....
Together for p5 1. And this also shows china wants to play a role though the United States is still the first fiddle. And china is the third one. The second one is the europeans. But we are learning. We are still in internship. To have a digression you have your American University in beirut for more than 100 years. And you have American University in cairo. We even dont have many confucius institutes there. So you can help us for that. The third one is there are emerging, new overlapping interests in cooperation. Like our cooperation against piracy piracy. Navigation safety security. And our cooperation on the chemical weapon issue of syria. Et cetera. So i still believe the United States is the most important factor. But you will change your ways of thinki ....
Security issue which has the Great Potential for souring the overall strategic discussion. I think it makes it hard. I think its essential for us to try to explore these ideas, but it becomes more of an academic or think tank exercise and less of a practical exercise if these sorts of perceptions create is much distrust. Last comments before i go out to the audience . Let me go out. We have a lot of hands and we have 10, 12 minutes. Im going to start with the gentleman way back on the left. Yes, you. Yes ill bill jones from executive intelligence review. Id like to just focus on this issue of the one road and one belt. Because it seems to me that the way the u. S. The attitude toward the one road, one belt will determine the course of human history. If it is willing to join this and to work in this, i think were going to have a flourishing of Economic Growth the likes which ....
Its going to predict how it would react under a stress event. And so was the key one of the key issues is what how are investors anticipating this . Is this part of their Investment Strategy . And do prices reflect it, and do practice Risk Management practices reflect that . I think that there are two issues we have to separate as we address the questions you offered. Is there a liquidity crisis . The first is are we in the midst of a transition from one type of market to over. If over night, we say that ever bond dealer who works in a bank can no longer deal bonds, the next day it will be a little harder to buy bounds. No question about it, and sell them as well. But what will happen afterwards, the banks will sell their operations to hedge funds to other companies, to the employees themselves and theyll get reorganized to find the capital and make money, because there ....
Issues we have to separate as we address the questions you offered. Is there a liquidity crisis . The first is are we in the midst of a transition from one type of market to over. If over night, we say that ever bond dealer who works in a bank can no longer deal bonds, the next day it will be a little harder to buy bounds. No question about it, and sell them as well. But what will happen afterwards, the banks will sell their operations to hedge funds to other companies, to the employees themselves and theyll get reorganized to find the capital and make money, because there are opportunities to make money when people demand liquidity, by the way, theres no such thing anywhere of free liquidity. Liquidity always has some price, sometimes its low and wed like it to be low, its always, always priced. The first issue, is there a question of transition . And if theres a question of transition, how do we get through the transition quickly . Maybe we dont want to have banks dealing bonds. The ....