Quote:
Originally Posted by turbo6bar
The problem ain't bonds. The problem is the debt obligations
Jurgen
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One day Mother saw a retard falling down the stairs at which she started screaming at me, " How the fk can you push those retards down the stairs, don't you have any feelings for people." To which I said, "I don't have to push the imbeciles down the stairs they do it just fine all by themselves." Now exactly what is a "DEBT OBLIGATION" sounds like a note or bond to me?
All those toxic debts are not all bad, they will take time to work out. The problem is not that they exist but their was no time to let it work out because the financial institutions didn't have the cash to carry them to maturity. And no one exactly knows how to value them.
It seems that the Non Regulatory types were just fine letting the system work itself out but saw that the system was coming unglued and crumbling a little more with every passing hour and development. So they had to step in to reassure the markets that the island of last resort (the govt) was stepping in to rectify the situation. No matter what they do the market is reassured that the US govt the veritable rock of Gibraltar is in the game.
Most foreign govts have seen the abyss open up and probably would be loath to rock the boat at this juncture in time. However and mark my words their patience with Americas spending large has only a limited duration. In 2 years if America does not get its house in order they will stop funding American debt. At that point they will demand a conservator ship of America or they will stop lending money. If they stop lending money then the USA money ain't gona be any good.