Discussion of Housing Bubble, US Dollar, Debt, Trade Deficit, Oil, Gold, Consumer Spending, Central Banks, Inflation, Outsourcing and the Bleak Future of the US economy
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Friday, July 11, 2008
Fears Grow over Fannie and Freddy
Fears Grow Over Mortgage Giants -- Stocks of Fannie Mae and Freddie Mac are hammered as the housing slump spreads. Future of these two giants being debated. Gvt takeover required?
I have to leave this quote on here. "going into the jaws of a vicious economic/dollar crisis those foreign dollar holdings become akin to playing toss with a lit stick of dynamite.He who holds the dollars when the fuse meets the powder are in for a very, very bad day. As a result, the foreign holders are watching the moves of the Fed very closely. Trying to avoid that scrutiny the Fed, like a curbside three card Monty dealer, has come up with some clever sleights of hand, including lending directly to investment banks and swapping Treasury bills for toxic paper. But that has accomplished little more than buying some time; it does nothing to resolve the rock and a hard place dilemma."
3 comments:
Randy, thought you would like to read this if you haven't already.
http://news.goldseek.com/AlfField/1215529200.php
I have to leave this quote on here.
"going into the jaws of a vicious economic/dollar crisis those foreign dollar holdings become akin to playing toss with a lit stick of dynamite.He who holds the dollars when the fuse meets the powder are in for a very, very bad day. As a result, the foreign holders are watching the moves of the Fed very closely. Trying to avoid that scrutiny the Fed, like a curbside three card Monty dealer, has come up with some clever sleights of hand, including lending directly to investment banks and swapping Treasury bills for toxic paper. But that has accomplished little more than buying some time; it does nothing to resolve the rock and a hard place dilemma."
Dam... I just knew I picked a bad day to stop sniffing glue.
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