Sankar and all:
Yes, but where is all the money coming from? Does the IMF, the US Fed etc have the money to bail out Japan, Korea, Indonesia, etc? What will this do to the currencies? If they are printing money or creating it with the push of a button, is there no one to "keep them honest" and make them pay for devaluation of the currency? If the US is to be the "lender of last resort", who, if anyone will be the "enforcer of last resort"?
Also, I understand the Japanese will NOT have to liquidate US treasurys:
biz.yahoo.com
"TOKYO, Nov 25 (Reuters) - Despite market speculation in the wake of a new round of Japanese financial woes, Japanese
investors are unlikely to begin a massive sell-off of their U.S. Treasury bond holdings, traders and analysts said on Tuesday.
Speculation that Japanese investors would move to sell T-bonds was rekindled by Monday's failure of Japan's fourth-largest
brokerage, Yamaichi Securities, which fuelled pessimism over the country's banking sector woes."
I seem to remember hearing somewhere that nothing is certain until it is officially denied. Any thoughts, anyone, re: my simplistic thinking?
Jack |
