collapse

It's a Bull Market in Government Intervention

I still don't get it - everybody is talking about using taxpayers money. But US gets already less taxes than are they spending - the missing money is created by issuing treasury bills, notes & bonds. I have not heard about rising economic activities or rising tax rates in US. So what realy means the words using taxpayers money is issuing treasury papers (borrowing more from China, Japan, Russia, Gulf states, etc) for someone who wants the stuff. Or is just print the money.

The Top 5 Looming Financial Issues

Issue #5: The estimated asset write-downs resulting from the 2007-2008 credit crisis. The International Monetary Fund has estimated this to be $1.1 trillion.

Worst case scenario is probably another $1 to $1.5 trillion, corresponding to defaults on 20% to 30% of home mortgages.

Any ideas about the US & global banking sector reserves to absorb the US mortgage failure? Tier I perhaps?