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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (16612)	1/23/2009 7:53:37 PM
From: Real Man	Respond to of 71454

Peanuts. The Fed will buy 500 bln. in agency bonds by July. That's Japan's holdings -g-

To: LTK007 who wrote (16612)	1/23/2009 8:31:25 PM
From: Slumdog	1 Recommendation Read Replies (1) \| Respond to of 71454

Geez Max, we need more accuracy in your post! Mr.Spock would say "it's not logical" The robot from the sixties tv series "Lost in Space" would say "it does not compute". These errors erode your credibility! <vbg>

To: LTK007 who wrote (16612)	1/23/2009 8:34:01 PM
From: Real Man	Read Replies (1) \| Respond to of 71454

Hard times, Max. FDIC's 35 bln. can't possibly cover Citi's or BAC's depositors, let alone their blown up contracts, so nationalization is the only option if it comes to that. The government signed up to protect depositors. If that policy is abandoned, there will be major chaos. Typically the government takes an 80% stake during nationalization (FNM/FRE/AIG model), so the stock does not go to zero, but close enough. Theoretically it should immediately dive 80%, but it normally dives more. The government can also put them in receivership, which means zero, as FDIC would do. The bank will then be liquidated. Yeah, and RBS where your dude works has been nationalized by UK central bank this Fall. <g>