Asbytec

China Continues To Consider U.S. Treasuries Its Best Option

Ary, I agree with you except for the last sentence. Everyone wants to blame Bush. Okay, I'll concede he could have acted more decisively. But, this thing has been building through many presidential terms, including Clinton's. It just happened to fail on Bush's watch.

As far as I am concerned, Paulson, like everyone else including Bush and Clinton, turned a blind eye as long as times were good. As long as people 'felt' richer due to the the wealth affect (which means it's just an illusion of wealth) through higher credit card limits and home equity, hey why stop the gravy train?

Its easy to look back and say the regulators should have stopped this thing, including not allowing huge trade deficits to build with China. So, one has to be careful about tossing stones. But, congress should have been all over this thing from day one. See, I see this as a money supply problem and congress has a constitutional mandate to set the price of money and reign in Greenspan.

But, we buy China's tennis shoes, they buy our bonds. That's how it works. Also, defending Bush in the slightest always earns me a "thumbs down." LOL