Joe Friday

A First Look Inside the Fannie / Freddie Bailout Plan

the usd will significantly weaken. The national debt just effectively doubled. Although it was always previously "implied", the debt was never explicitly acknowledgd before now. Paulson admitted in his speech this morning that the ambiguity was a big problem. The guarantee is now explicit, and as a percentage of gdp, the us nominal debt just doubled.....
The greenback will likely descend, and commodities should strengthen, over the next few weeks as this becomes better understood.