The Force is whispering advice into my ear that makes a lot of sense. It has told me that before things get Truly Dire, i.e., well before US elections in November, there will be some kind of direct bailout of mortgage debtors.
This has been the subject of the worldwide jungle drum network discussion in which all uniformly say "no, this is not happening, not being planned, not on anyone's agenda" which of course means get ready for it, suckah.
The US cannot go into Presidential elections without the major parties having Done Something to prevent the widespread catastrophe which will befall global economies if the US mortgage market goes to hell and if the CDS market implodes, as is likely sooner or later.
The Force tells me that the world's central banks are working on this rescue plan because it is in the interest of all concerned to keep the American consumer consuming.
What will happen if the direct bailout indeed takes place?
Initially, a huge whoopeedoo of cheer and elation and optimism. Stock markets go higher, gold goes down, dollar stabilizes., the Yen and the Swissie take it on the chin.
Will the good cheer, elation and optimism be justified? Will they last? What will happen as part of the bargain for there will no doubt be concessions and sub-deals made as part of the Main Deal.
What if CDS obligations are all of a sudden declared null and void on national security grounds or on some other justification?
The $64 question.
Like a good Boy Scout, be prepared. |
