The Real Bailout in works!

Discussion in 'Economics' started by toc, Sep 27, 2008.

  1. toc



    The real bailout is in works, all this $700B is nonsense. Here is how it will pan out:

    USD loses its value by 50%. This renders 11T debt to the 5T levels.

    At even 5% a year interest, this transforms to $250B a year savings.

    So far in Sub Prime mess, banks have written off $400B worth of bad loans. It will take 18-24months to recoup this loss. All the while, USD will remain in it's corrected 50% value for next few years.

    Dr. Gloom is partially right, cash can be rendered to lesser worth if not totally worthless!

    Time to buy gold, land, assets that can be used to make service business type monies when mass layoffs hit the work force. A deep recession or even depression possible.

    Whom to blame, Democrats under Clinton for initiating the Sub-Prime deregulation program to have even lower classes own an American Dream house. Then came Bush and his tax cuts followed by Sept 11 and Iraq war, higher oil prices followed by real estate crash. All along was the worsening trade deficit with China and jobs being sent overseas. Illegal immigrants further fueled the real estate bubble by working for less than half the wages. Demand vrs Supply rebalancing took effect and no collateral loan mortgage gave in the bottom.

    USD is going down, because that is the only way for $5T correction, a bailout package engineered by the market. No bastard politician is ready to take the direct blame and name for the bailout. Tricky goes these days!
  2. Was thinking about the same 'fix' this morning with a group of traders. Devaluing the dollar would work, and I think it's going to happen, but then what do you have...

    Exports rise as the dollar is attractive to other countries, but imports become much, much higher. Oil, being number one on the list.