Youngdan, just a question for you. I'm reading reports that the US government could impose currency controls very shortly, how likely is that and what impact will it have if they went down this route? Could it strengthen the dollar in the short term if it did happen?
I am unusual on this site. When I am wrong I admit it and when I don't know something I admit that too. I do not know how the US would go about imposing currency controls. It would be up until recently such an absurd concept for what they are pretending to be a capitalist system, that I don't think that I ever saw it discussed.
We are getting so much like the Soviet Union that if McCain looked a bit healthier he would pass for Chernenko a few days before he died.
We are 4 hours before Japan opens and the deal will be announced. I do not know how much debate will be allowed. I will be watching the House where the real action will be. I am hopefull of it failing.
The talk of currency controls reflects the concern that everyone has that the dollar will crash if the bailout is passed. If there is a big selloff in the Bonds and dollar then a House member who understands what this means would be crazy to vote for it. I will b watching gold and the dollar in Asia.
There are a lot of rumours. One is that Martial Law is about to be declared. This has to do with battle-hardened troops from Iraq that are being deployed onto American streets on Oct 1st. This was prevented by the Posse Commitas Law but The Military Commissions Act recently passed has allowed this to happen. Those who pointed out this eventuality at the time were called Loons but needless to say they were right.
This coincides with the end of the financial year on Sept 30.
Thanks for that info youngdan. Yes, anything is possible, I would say they ( Bush, Bernanke and Paulson) have been preparing a long time for this moment, they must have known it was coming. What is the feeling on the ground in the US, people must be concerned about life savings, pensions etc. My impression of the whole thing is that they deliberately allowed Lehmans to fail so they could put this plan into action. If it had happened later, Congress would have been in recess for the elections, it would have been harder to bring in. I read a report from last year that the dollar could lose 90%!! of its value in a worst case scenario, I must try and find that link and post it up now, it seemed crazy at the time!!Originally Posted by youngdan
Three hours until the Asian markets open!! I wonder what Jack Bauer is up to nowIt makes 24 seem like a picnic!
The FDIC put the deposits and branches of WaMu up for auction before moving on Thursday night.That is certainly the flavour of this whole bailout. Washington Mutual deal was unmitigated pillage, but then Morgans do seem to be a favoured entity. Surely none of this can do anything to restore confidence? Interesting to see how this plays out.
Neither the FDIC nor the uninsured depositors lost out.
WaMu shareholders, bondholders and presumably management all lost out big time.
There are times when you are simply required to be impolite. There are times when condescension is called for!
- Aaron Sorkin writing as President Bartlet to Obama, NYT 21/09/2008
You can't build a smart economy based on dumb decisions.
- Richard Bruton 18/12/2008
Go great credit for predicting this. When there was no longer enough cash to service the credit bubble then it had to start contracting. Everything that has happened since the delinquency rates on home loans began to rise 18 months ago was mathematically impossible to avoid without monetizing the whole economy. We have seen increasingly desperate measures since then to inject new credit into the systen to save it.
Bottom line is we are stuck in a deflationary spiral.
The good news is that those donkeys that talk of free health care might finally shut up and realise there is no such thing as free health care.
Regular people on thre ground here are following this more than they ever followed anything in the past. My neighbour closed out any business he had with AIG for example. In the computor age you don't need to line up at the bank. WaMu had 16 billion withdrawn very quickly and First Reserve Money Market Fund had over 40 billion withdrawn in 2 days or 60%.
I suppose the gameplan is to get out yourself and then e-mail your brother. I am now reading that the Boston Federal Reserve lent out 72 billion to the likes of State Street to try to shore up money market funds held by Fidelity etc up here in Boston
Anyone that did not buy gold coins last year was crazy.
It is reckoned that the House will vote on this tomorrow. We will see if Barney Crank can get 218 votes. It will be great to get them identified to one and all and we have 40 days to nail these crooks.
Good news for Cindy Sheehan anyway.
I will be surprised if it passes but with any luck they might all be voted out of office if there is even an election
Youngdan, am I detecting a certain level of doubt in your fine self about the election happening?
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Congress has implicit authority to preserve the integrity of the presidential election process and I would imagine each state can call off their own elections?
Not likely though, surely not? It isn't a state of war.
I would be delighted if Cindy Sheehan and many like her were elected. If people are interested in ending wars and a bit of honesty then that is what they should be supporting and just dump most of the Republicans and Democrats.
The proposal certainly has increased in size. Over 100 pages now. It will be interesting to see who votes for this. It is already being called cronyism.
House of Representative voting on the deal as we speak.
Signed, Universal (LGBT...QRSTUVWXYZ)
House votes it down. 206Y 227N. What now?
Live link
'To attempt to rerun a referendum as a means of reversing the democratic decision taken by the people would be rightly regarded as an affront'. Dick Roche TD 21.12.01
LinkBack URL
About LinkBacks
Reply With Quote