Of course. He treats several topics. Let us go one by one: 1.- Where is the bank bailout money utimately going?
Of course, most of them go to hedge funds affiliated to banks, to their subsidiaries, etc. in order to fill their holes and their losses. My question is: is it a surprise? It is a bank bailout, that is what a bank bailout is. Everybody knew it since the very begining of the Toxic Assets Relief Program, it is to fill what toxic assets substracted from their balance sheets. Once their balance sheets are recovered they could start to supply credit again starting from scratch. In theory, they will pay back with future profits if they get profits one day. 2.- 2010 budget a big scam? I guess they mean next budget, the Obama s budget. Not the previous one. To be honest I do not know how this budget has been communicated to Americans. My perception is that it has not been communicated at all, but I can be wrong. There are experts on US Federal budget as it is probably the most spaghetti-alike budget that any coyntry in the world has, if I made myself understood. I have read that next budget seems to be very similar to any other US budget in the past. If it has been communicated as the solution to this crisis it is not true, of course, but maybe it has been the usual politic "exhuberance of messages" or maybe a scam, I cannot know sorry. In any case the solution to this crisis will not come from any budget because economic authorities cannot know now what they might need within coming months. There are too many scenarios, too many risks arounds and nobody can know for sure how they all will behave. The solution must come if necesary from off-budget (such as further stimulous) or from financial policies such as higher indebtness or on the contary from sudden and dramatic cut of expenditures depending on which risks US economy faces within next months. As he tells, and as usual in all US budgets, the defense budget is one of the main reasons of this crisis (if not the main one) and it does not change in this budget. . 3.- Privatization of transport network and other governmental assets. It might be. What he tells is a potential scenario that makes sense. But I cannot judge on intentions. 4.- The evil cycle banks-Fed-US government-US taxpayers. That is absolutely true. But that happens when a country has a private central bank that lends money to government at a certain interest. If amounts are low it is moderately outrageous, if amounts are high (such as a $1.5 trillions) it is 1.5 trillion times more outrageous. About last comments about what they are going to do with that money I cannot prejudge as I told. I can say that last months they used it to fill their losses and right now they are mostly using that money (or rather lending again with fresh money) mostly to fund carrytrade, but it could end up from one day to the next one, as soon as the Fed decides to change its policy. It is related to my post "What exactly Bernanke aims? and what Americans want" http://groups.google.com/group/world-thread/browse_thread/thread/eff6c6f7c3c15634?hl=en# I hope it helps. If not, please, somment here whatever you want. Thanks a lot for your message, I guess it can help many people to understand better what is happening. Peace and best wishes. Xi On Nov 19, 11:24 pm, Rebel <[email protected]> wrote: > http://www.youtube.com/watch?v=1eSVIXQzsFs > > Tell me what you think ... --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
