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  • There's No Happy Ending to This Bailout [View article]
    Finally we're getting to the real reasons for the bailout. It's not credit and liquidity. This article is one of the few that goes to the actual reason Paulson, et al are in such a panic about wall st. It may well be the end of the "deficit without tears" i.e. USD loses its defacto reserve status. When the dollar is devalued to 10% like some Third World country, how embarassing for us.

    The other reason for the panic is the preservation of the SWF's. If they ever start thinking there is a better / safer investment out there than the US, the dollar is sunk. Globalization is the great equalizer. Devaluation will bring the US economy abruptly to the true level that the Feds have been trying to hide or ease into. Forcing China to eat their poor investments might even be considered an act of war.

    So it's less about Main Street and more about The Hill.
    Sep 29 21:54 pm |Rating: +1 0
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