When it comes to the U.S. credit crisis, we’ve all heard the numbers. The stock market decline wiped out $7 trillion in shareholder wealth. It forced the federal government to commit to $11.6 trillion in bailout programs and stimulus spending. And it’s led to the longest U.S. downturn since the Great Depression.
Think back hard for a few seconds… to the days when the dollar was the most hated asset in the world. In those days, the dollar was joked about, the euro was rapped about, and everyone came to the conclusion that the buck was history.
While members of Congress debated the merits of President Obama’s $838 billion stimulus plan, Treasury Secretary Timothy Geithner unveiled a raft of new measures aimed at returning functionality to the besieged credit markets.
The dollar continues to rally… No risk takers to be found… Simply awful data yesterday… Gold continues its rally… And Now… Today’s Pfennig!
In a speech before the London School of Economics a week ago, U.S. Federal Reserve Chairman Ben S. Bernanke offered a perverse economic theory in his quest to gather support for never-ending Wall Street bailouts.
” The United States must engineer a new transparent, non-partisan, “systemic-centric,” economy-oriented regulatory apparatus that facilitates innovation in capital formation, product efficacy, public protection and open, fair and equal market access.”
The world markets have begun a correction – and the governments are determined to stop it…the days of ’stuff lust’ are long gone. Replacing private spending with public spending…in the fight against global financial illness the Fed can’t cure the patient. The U.S. empire may be too old and tired to battle this downturn…the 50th anniversary of Cuba’s revolution…tune into the Critic’s Choice Awards on VH1 tonight and cheer for I.O.U.S.A.!…and more!
NBER: U.S. in Recession Since Dec. 2007; Fed Reserve Could Buy T-Bills; JP Morgan Sees 0% Interest Rates; Pilgrim’s Pride Files for Bankruptcy Protection; Consumer Credit Crunch in the Making; Crude Slides on Recession Outlook; J&J to Buy Mentor
But this monetary expansion thing is the stuff of nightmares, too, and one day soon you will wake up screaming in the middle of the night, bathed in sweat, jolted out of a nightmare of financial misery and suffering that is all but unimaginable…
The Bush Administration is considering a plan that could keep as many as 3 million homeowners who are behind on their mortgages from losing their houses, The New York Times reported today (Thursday).
