It's Tuesday October 11th and this is Market Fullery. I'm Chris Ellen joining me in

studio today from Motley Full Inside Value Joe Maker, for Motley Full Income

Ingser James Early and for Motley Full Asset Management, Tim Hanson.

Guys, good to see it.

What up?

Hey, Chris. We've got Occupy Wall Street.

We've got IBM General Mills, but we are going to begin overseas.

Yesterday, China's sovereign wealth fund

announced it would begin buying shares of China's four largest state banks.

Tim Hanson, does China's government think that the banks are undervalued or is this a

confidence boosting move? Well yesterday I just thought this was idiocy because

as we've talked about... So there's a third option. Well yeah as we've talked about in the past, China's banks have lent way too much money, likely

to people who aren't going to be able to pay it back, and there's got to be some sort of

solution that comes in terms of a bailout whether it's implicit or

explicit to to fix this so anybody throwing money at these banks investing that

money in these banks is probably going to end up with a bad return.

Now that's nothing new for sovereign wealth funds. They're

historically very bad investors. So on the face of this it just looked like

another dumb move by a sovereign wealth fund with some sort of political angle

attached to it. You know the sovereign wealth on the Banks both right around the government, so everybody's happy.

Then I read a very interesting column by my friend and economist living in China, Patrick Jovanek,

and he basically said that maybe this is actually smarter than it looks by the Chinese sovereign wealth one because he postulated that they are buying shares of their banks because the banks are overvalued.

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