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

To: westpacific who wrote (55041)	9/15/2009 2:22:54 PM
From: Chas.	Read Replies (1) \| Respond to of 218125

It seems that most investors have either forgotten or completely ignore the fact that banks hold hundreds of billions of dollars of toxic assets. These are assets that are valued on quarterly earnings at levels well above market-price. Even though bank executives were successful in pressuring regulators to changing accounting rules, they still hold the toxic assets. The financial crisis persists. The only factor that has changed is confidence. Investors and executives are more confident now - even though actual financial conditions have continued to deteriorate. It's simply a matter of time before the newfound confidence reverts back to panic and deflation. Lifted from a Link posted by TJ a few post's back...... I think this gets into SAT's predictions mercatoliberonews.blogspot.com Here is the link as posted by TJ...it bears a glance or so..... regards

To: westpacific who wrote (55041)	9/15/2009 5:32:53 PM
From: Follies	Respond to of 218125

""how can the Fed go bankrupt if it can print money?"" How, If a country like China or Japan no longer honors the derivatives of the private banks that make up this institution... That is how. I agree but I dont see how if China and Japan no longer honor the derivatives, or the sovereign bonds of the US, the currency USD can be worth more. I equate deflation with the currency being worth more and inflation with the currency being worth less. If we have deflation and the currency is worth more, China will honor those derivatives and contracts issued in USD. I don't see that happening. I can see certain items , like new cars, being sold for less because of lack of demand, but that is not deflation.