Velkom to Amerika, comrade
(Stimulus Bill will be just in time to pay for new soup kitchens)
The noose around U.S banks' neck: the unknown
Panic about the fate of U.S. financial titans has led to concern that one might not survive the weekend. A high degree of uncertainty about the U.S. government's next move is only fanning the flames. And suddenly, the spectre of nationalization is gaining credulity among investors, economists and policy makers.
6 comments:
there's a report on bloomberg tonight that the u.s. is taking a larger stake in citi. i've read a couple of articles this weekend saying that the gov is caught in a catch22 -- the large money center banks must be nationalized to avoid a super-sized lehman-style meltdown, but that actual nationalization would cause a horrific run on the banks.
i think i could run down the links if you want them.
also carolina glick had a column on how every single act by the obama admin so far has been anti-isreal.
edit -- should be caroline, not carolina.
http://finance.yahoo.com/news/Ahead-of-the-Bell-Cabelas-apf-14423144.html
and now for something potentially really scary:
http://market-ticker.denninger.net/archives/824-AIG-Inquiring-Minds-Want-To-Know.html
from the comments section:
1)So let me see if I have this right.
In September the Chinese threatened economic warfare on the US if we didn't make them whole on some of their US investments.
Bernake and Paulson met with top leaders in Congress to tell them that they had until Monday to give them the money to be funneled to the Chinese or else the Chinese would trigger the collapse of our economy.
So the TARP was a way to get this money to the Chinese without anyone really knowing about it. That's why we can't be told where exactly all the money has gone.
2)You know, the MSM has successfully avoided discovering where the TARP money went. Now that AIG has lost $60 billion in one quarter (I wonder how long that record will last? Dozens of years, or closer to dozens of days?), and AIG got so much money, it almost can't be avoided. Either it is found out and the phone lines to Congress melt, with accompanying street protests, or it remains covered up and confidence (what little is left) evaporates. We know what happens then. Hope you're all short.
This is surely a major league, class-of-its-own, multi-megaton-sized WTF event. If it turns out that we caved to Chinese blackmail, the markets will crash and historians might date the 2nd American Revolution to today.
Last September 18 when there was a run on $550B in money market funds and almost brought the world economy down...I figured it must have been the Japanese or Chinese. Not many other entities have that much money to pull out of the US.
If what the comment section you quote is true (I can't find it at that link anymore), this is getting very, very crazy. If the world economies go down due to economic retaliation, the start of WWIII will shortly follow, just like WWII followed the last depression.
Regarding the Caroline Glick article:
First of all I love reading Caroline Glick - she's so smart. I haven't yet had time to read that article, but I will. I'm not surprised Obama is coming out against Israel. He has to appear more even-handed with Iran and its proxies, otherwise he thinks he has no chance of 'change we can believe in'.
Truth is, with his anti-Israel approach he has absolutely zero chance for any lasting peace. There will be no lasting peace til Christ comes. A temporary but true peace? Possible. But then we'd all have to start calling Obama the Anti-Christ. Some already are.
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