The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: axial who wrote (19289)	3/30/2009 11:18:40 AM
From: GST	16 Recommendations Read Replies (2) of 71454

<Nevertheless, you want the banks to fail, the businesses like GM and Chrysler to crash, and the US to walk away from its derivative obligations> I don't want GM and Chrysler to fail -- they have done a spectacular job of that themselves. The answer for both companies is bankruptcy -- wiping out the value of their stock, their debt and their promises to their employees. The only question then is what chance they have to emerge from bankruptcy. If they go bankrupt they have a chance to survive -- otherwise it is highly unlikely. As for the second part of what you said <"US to walk away from its derivative obligations"> the US does not have any derivative obligations. Derivatives are not insured by the US government -- we don't even get to know who owes who what as it stands now. Paying off these gambling debts is no more legitimate, necessary or wise than paying off gambling debts for fat losers in Vegas. And if banks fail we have an extremely effective method of dealing with them -- the FDIC. If you have been around long enough you will remember the last time the FDIC had to act to step in and take over hundreds of financial institutions, wipe out their equity and send some people to jail, It is when you fail to do that that you will have a Japan style decades long economic water torture, with zombie banks run by the same old gang of incompetents and crooks doing nothing to help your economy while putting all their efforts into surviving -- albeit surviving as the living dead -- however dysfunctional that might be for society. We are not on te road to recovery -- we are on the road to endless debt, stagnation and decline. The responsibility of the US government is to the people -- not the corporations and investors. If we need to do things for people by racking up god-awful debts for a time, so be it. But to bail out crooks and incompetents to keep them at the helm of our economic ship and to keep their companies 'alive' -- that is indeed the road to ruin.

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