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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (26725)12/22/2007 12:15:49 PM
From: KyrosL  Read Replies (1) | Respond to of 217571
 
These wealth funds should give pause to those that think that a lot of money printing is needed to save the world from the bursting of the housing and credit bubbles.

All the printing so far has not really been printing at all. The money was loaned out temporarily and withdrawn promptly.

With wealth funds eagerly investing in the wounded financials, and with their cash hoards swelling, those expecting armageddon are probably wrong.



To: elmatador who wrote (26725)12/22/2007 1:02:23 PM
From: Maurice Winn  Respond to of 217571
 
<No need to worry. Those monsters will save any company in dire stratits.> Not quite any company. Only those who have profitable businesses if the debts are wiped out. There will still be a very large adjustment as the swarms of people who were employed to distribute umpty mega $billions in Uncle Al KBE's super low interest rate regime in the real estate and financial markets are redeployed to something economically productive.

All those people who used to provide things to those people will also be redeployed.

Fortunately, the US$ has tumbled so much that exports are booming. China could outsource work to the USA [just kidding - but plenty of Chinese might think it expedient to have a bolt-hole in the USA or even just a nice landing pad for international travel].

Mqurice