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

To: axial who wrote (17148)	2/2/2009 10:17:58 AM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71409

Overall, they try to solve the problem, but it's a big problem. It would be nice to see less manipulative (i.e. prop the markets) and more real (create stimulus for the real economy, i.e. jobs, even government jobs; lend to businesses, etc.) action. Financial services need to contract, real economy needs to grow. The crisis is also global, which makes it even harder to tackle. It seems the globe moves toward nationalization as a way to solve the derivatives mess, but US is only partially there. The reason is traditional disgust with such "socialist" measures. Nationalization solves the derivative mess because then there is only one counterparty, the government, and the contracts are cancelled. However, it does not solve the credit bubble. Derivatives are kinda sugar on top, the real mess is too much debt.