Sam <[email protected]> wrote: > > You watch and believe too much > > One of the more intersting items in the movie Inside Job is how our economics educational system at Ivy League schools has become corrupted over the last 30 years.
It has an interesting interview with a professor who wrote a very positive review of Iceland's banking system. When asked who he spoke with in Iceland he said, "you know, people ... different ... people". He was paid a nice consulting fee by the Iceland Chamber of Commerce. Of course 2 years later their economy imploded and now they're bankrupt. What's interesting about the US meltdown is that many think things are "humming along". What a lot of people don't understand is that they're humming along because the Federal Reserve is buying 70% of the debt the US is issuing to keep our economy humming along. It's like losing your job. Your kids sense the crisis, but once you decide to tap into your savings to pay your bills they sense that everything's back to normal and things are humming along. Of course you know that if you don't find a job before your savings runs out then everything won't be humming so well. And you also know the humming will stop pretty abruptly and things for your kids will change in a flash. They'll go from humming along to total life change. Well, QE2 - the Fed buying 70% of US deb - ends in June. In anticipation of this PIMCO, once the largest buyer of US bonds, has sold all of them. ALL OF THEM. They have NO INVESTMENT in US debt any longer. Now PIMCO is considered to be some of the smartest - and most conservative - investors out there. QE2 ends in June. And there's no doubt there'll be a QE3. The last time the World was in a situation like this it started WWII. The time before that WWI. Course this time there's no gold standard. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:335041 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
