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

To: NOW who wrote (18906)	3/20/2009 9:27:00 PM
From: Gary Mohilner	2 Recommendations Read Replies (1) \| Respond to of 71454

What happens if the U.S. makes a profit on the bailout. I'd love to see the spreadsheets on what the U.S. paid for all the AIG, BAC, etc stock they own, but based on when the investments were made, they should have already roughly doubled their money in stocks like BAC and Citibank. When does the govt. get to close it's position on these investments. I would think that if things go well in the next several years corporations like Bank of America could come out smelling like a rose, they could easily be trading in double figures in a few years, or less. If the govt got a ten banger out of several of the stocks they invested in, I suspect that all the other money they've paid out could be less than the profits they make in these stocks. As the 80% owner of AIG it's up to them where the stock goes, but if they own it for under $1 and don't permit it to fail, AIG's success can only bring the govt success. My point is, everyone's writing off all the govt spending as though they were getting nothing for their money, it's time to realize they are, and it might pay back huge dividends to all of us taxpayers. Gary

To: NOW who wrote (18906)	3/21/2009 2:51:25 AM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71454

That would be true if we lent money to the World, not the other way around. FWIW, the dollar short squeeze was clearly in part engineered by Bernanke, Paulson, and the ECB, as the clownbuck was threatening to die. The US rating agencies dropped the sovereign ratings of our creditors - and voila - the dollar rally was engineered. The truth is, our sovereign rating is now C-. In fact, I'd give it an F, cause the savings of the whole World is not enough to finance $2 Trillion dollar budget deficit. The situation is both ways, we own foreign assets, they own more ours. So, as we dumped foreign assets, the dollar rallied. Now they dump ours and the dollar will drop. Who wants a rummy currency? Would YOU hold Zimbabwe government bonds? -g- Here are the fundamentals: Foreigners own productive assets - plants. All we produce here thanks to twin bubbles is PAPER no longer backed by anything. Thanks to the bailouts of the WRONG paper producing sector (finance), we will keep producing paper. Only nobody in the World wants that paper now, nor do they want our dollar, which is backed by that trash. So... they will keep selling until our paper is backed by real assets, or they will buy up US real assets with their dollars.