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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (70320)	9/6/2008 10:25:33 AM
From: carranza2	2 Recommendations Read Replies (1) \| Respond to of 74559

It's annoying that the USA plans to take over Freddie and Fannie and bail out the deadbeats in the speculative financial industry, loading the burden on the productive shareholders in the Geek sector of Qualcomm, Microsoft et al. Qualcomm could have bought the assets at the right price. It is a lot more than simply annoying, Mq. To me, anyway. There will be an enormous debt incurred in order to do the bail out. The bailouts, coupled with the unfunded entitlement programs, will have generational implications. Standards of living in the US will drop, inflation will rise, infrastructure will deteriorate, education will suffer, etc. It will not be pretty. The responsibility for this fiasco I assign below. The 2Fs bailout had to take place for many Asian and European investors had enormous stakes in their bonds. And, rightly or wrongly, they all assumed the 2F's debts were backed by the US government. However, the bond agreements said nothing about ultimate US government responsibility for the debentures. The US got bullied into backing 2Fs despite having no legal obligation to do so because the consequences of acting otherwise would have been bleak. A sell off in Treasuries perhaps, a move to take the dollar's reserve currency status away, who knows. Blackmail, in other words, but blackmail which could not be resisted. The 2Fs bailout shows in stark terms just how screwed up we have become. Your 'brilliant' Greenspan is largely responsible for this because of his easy money policies at a time when easy money was simply not required. He would be imprisoned or worse in more just societies, those that impose real responsibility for such egregious and near-criminal mistakes in judgment. History will judge him very harshly. I would be ashamed to show my face in public if I were him. He would have committed sepukku long ago if he were an honorable Japanese gentleman.