Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (90876)	10/20/2008 2:32:27 PM
From: Dale Baker	Read Replies (1) \| Respond to of 541150

Since we are the world's reserve currency, the Fed can expand its balance sheet enough to prop up our main financial institutions; we don't have to BK Citigroup and the other big banks even when they get in trouble. We can afford to step in and prop them up. Smaller countries with a weak, illiquid currency get crunched in a storm like this month brought on all of us. Eventually the bailout will restore enough confidence for an orderly deleveraging of risk in the US system, without too much more major damage. The big blowups (AIG, Lehman, Bear Stearns) are mostly behind us, I think.