Who will Bail out the US Govt?

[myinvestorsplace]

Who Will Bail Out The US Government?
In my blog (CapitalInvestor1836.blogger.com ) I thought I was being fascitious when I asked the retorical question...

Who will bail out the US Govt?

The facts are I believe anything can happen...but

Digging deeper...I realized some very concerning issues...

Firstly the US govt has enormous money problems of it'sown.The government is much greater in debt than AIG, Fannie and who knows who is next.The national debt is approx $9.634 trillion currently. That is a mind boggling number!! What is also worse this huge number has grown 4 Trillion dollars over the current administration of Bush.Now put in perspective the interest that we the tax payers must pay.

How About 230 Billion dollars a year!!!

Worse yet.. The federal deficit for this fiscal year ending September 30 is expected in the range of $400
billion - close to the all-time high.

My simple question is where is this going to end??

Have you looked at short term interest rates from yesterday...3 month rates are sickening..Everyone is running to them seeking security..Possibly the consensus is that these financial companies such as AIG are too big to fail. Is it because of their derviative exposures, which are unregulated with now questionable counterparty risks. There is only about 62 trillion dollars of these floating around..

I love the statement that Dana Perino came out with yesterday... "The free market is alive and well." as well as she stated "We have systems in place here in our country to be able to deal with shocks to the system like this,". I would not like to see the faces of people standing in line trying to take their money out of the bank...She forgot an important issue... How much money does the FDIC have... something like $50 billion..is that really enough to gurantee $100k for every depositer? I care to disaagree.. Just look IndyMac Bank blew up and took down approx $10 Billion.. Don't worry..we are not alone...England is the same shape and if not worse...

Who will bail out the US Govt???

Andrew Abraham

 

[JTrader]

http://www.trade2win.com/boards/news-current-affairs/39112-biggest-scam-history.html

 

[FXSCALPER2]

Where is it going to end?

The problem is in the assupmtion that the government had any money to begin with. Their source of income is tax and debts. The tax income is useless due to inflation, so they borrow. They borrow printed money backed by nothing. This printed money is used to 'bail out' banks that deserve to collapse. A moment's thought tells you that is a silly thing to do but governments and big institutions are essentially silly things. The Chinese and Japanese are sitting on a promisory note from the US government worth a trillion dollars. What is the source of this promise to pay those governments? Thin air.

And look at the people in charge. George Bush?! Are people kidding us voting for monkeys and expecting the world to function?

 

[JTrader]

Where is it going to end?

The problem is in the assupmtion that the government had any money to begin with. Their source of income is tax and debts. The tax income is useless due to inflation, so they borrow. They borrow printed money backed by nothing. This printed money is used to 'bail out' banks that deserve to collapse. A moment's thought tells you that is a silly thing to do but governments and big institutions are essentially silly things. The Chinese and Japanese are sitting on a promisory note from the US government worth a trillion dollars. What is the source of this promise to pay those governments? Thin air.

And look at the people in charge. George Bush?! Are people kidding us voting for monkeys and expecting the world to function?

lol
as if GW understands the current economic crisis!

 

[tomorton]

Hi myinvestorsplace -

You keep dropping andrew abraham's blog stuff into here. Its not bad stuff, but we can all go elsewhere and read it if we want to.

What's your own opinion on the current economic crisis, and how are you responding to it as a trader?

 

[myinvestorsplace]

Andrew Abraham's Reply

Hi myinvestorsplace -

You keep dropping andrew abraham's blog stuff into here. Its not bad stuff, but we can all go elsewhere and read it if we want to.

What's your own opinion on the current economic crisis, and how are you responding to it as a trader?

I believe that this situation will end... America is a great country... we have gone through many other crisises...and this too will pass..more so..once it does end.. ( I will add I have no idea when it will end)..There will be fortunes to be made in stocks.. real estate...distressed debt...

As far as what I am doing... I have money in short US govt securities...watching them carefully if the dollar weakens will hedge my dollars with futures contracts...as well as have money with other Hedge Fund managers that I know personally ( that understand risk)...as well as believe in my own trading...and our fund...

further footnote... do not put more than 5% in any idea... I hope this helps...

Andy Abraham

 

[tomorton]

Fair enough.

I agree, its only a crisis, not the end of the world - this crisis will pass, but like you I don't try to put an X on the calendar when this will occur - and I'm not buying real estate stocks just yet but they will be good runners when 'normality' resumes.

Meantime, being in the UK, I am able to place short spreadbets on the main indices on a short-term basis, and having a decidedly good month. Good luck.

 

[FXSCALPER2]

I believe that this situation will end... America is a great country... we have gone through many other crisises...and this too will pass..more so..once it does end.. ( I will add I have no idea when it will end)..There will be fortunes to be made in stocks.. real estate...distressed debt...

As far as what I am doing... I have money in short US govt securities...watching them carefully if the dollar weakens will hedge my dollars with futures contracts...as well as have money with other Hedge Fund managers that I know personally ( that understand risk)...as well as believe in my own trading...and our fund...

further footnote... do not put more than 5% in any idea... I hope this helps...

Andy Abraham

There was a time when Sterling was the reserve currency of the world and Britain had the power. Unless the US gets its act together, they are in serious danger of losing their place in the world. America has never had to go through eight years of a stupid government who had no clue what is in the best interest of the country. I don't believe things happened by design. I think Bush was a genuinely stupid man who run the country to the ground. He is such a clueless ****** and the folks there better realise it and fix their problems.

When was the last time a Lehman Brothers or a Bear Stearns failed in one year? When was the last time giants like AIG, Merril Lynch and Morgan Stanley were threatened all at once in a very short period of time? When was the last time the US owed everything to Asia? Something has to give and it will.

Maybe they can cover the cracks now but eventually, they will have to clean house and do a half-honest job instead of bailing out insubstantial rich people and preventing the markets from going down artificially.

 

[pseudo straddle]

Lets see now -

I've gotta few pound [GBP] coins in my pocket -

Oh! ****, half of them are counterfeight!!

 

[JTrader]

Lets see now -

I've gotta few pound [GBP] coins in my pocket -

Oh! ****, half of them are counterfeight!!

Half are counterfeit, the infinate amount that remain have been created out of thin air by the BOE under the fractional reserve banking system. Double the money supply every few months & wonder why everyones talking hyperinflation.