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

To: dybdahl who wrote (41763)10/24/2008 4:46:25 AM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 218116
 
The arrangement of last summer was a workable arrangement as the USD was low v other currencies exports where booming and US had relative full employment.

The only "fly in the ointment" where high energy prices mostly driven by Russia Iran and Venezuela manipulation with all the speculators piling in, OPEC enjoying the ride with Goldman Sachs as the cheerleader - unfortunately none of the perpetrators where or will be punished.

This eroded the ability of many in the US and in other countries to pay their mortgages and things started to snowball.

The FED was sleeping at the wheel for to long as was the Treasury under Paulson. They should have acted in winter of 2007 and bring on the regulators on the pimps selling subprime mortgages during summer of 2007 or earlier – unfortunate the Democratic Congress opposed anything that had to do with mortgages.

Now we are in a process of sheer madness and panic. The inflicted despair by the talking heads who know nothing about anything they report is beyond imagination they are the main culprit of destroying confidence on top of ill conceived political solution and idiotic political brinkmanship.

How to restore confidence without having casualties is above my ability to ponder.

I speculate that only drastic ideas may help short of shutting down everything financial



To: dybdahl who wrote (41763)10/24/2008 8:50:02 AM
From: Elroy Jetson  Read Replies (1) | Respond to of 218116
 
Bear in mind that 2/3 of the $14 trillion of US external debt is consumer and business debt. The portion of this which cannot continue to be paid will be liquidated in bankruptcy, leaving the debt owners with pennies on the Dollar.

I don't see any problem for the US to easily make payment on the $4.6 trillion of governmental external debt - which is less than four months of current US income.
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