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Wednesday, October 01, 2008
The $700 billion is to appease foreign investors?
I said in August that I thought powerful foreign creditors would refuse to be cheated, and now Karl Denninger tells us that the $700 billion bailout is to compensate these parties.
Hi, Patrick. Afraid I didn't do the due diligence on the proposals, it just seemed obvious to me that powerful foreign creditors won't let themselves be stuffed. The US has put itself in a dangerously vulnerable position with its massive overextension of debt; the financial counterpart of Napoleon's march on Moscow. Just have to hope not to lose too much on the "retreat" - at least the Chinese (et al.) do have a stake in the status quo - for now. In a decade's time, with more developed markets in the Far East, it might be a horribly different story, so maybe it's good news that the crisis has come at this stage.
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well well well !
ReplyDeletenow there's a thing !
Sarky!
ReplyDeleteI was a bit surprised to see Karl jumping all over this now as, like you, I noticed it back in the original plan/clarification.
ReplyDeleteMaybe just a good card to play to drum up support for a 'no' later?
Hi, Patrick. Afraid I didn't do the due diligence on the proposals, it just seemed obvious to me that powerful foreign creditors won't let themselves be stuffed. The US has put itself in a dangerously vulnerable position with its massive overextension of debt; the financial counterpart of Napoleon's march on Moscow. Just have to hope not to lose too much on the "retreat" - at least the Chinese (et al.) do have a stake in the status quo - for now. In a decade's time, with more developed markets in the Far East, it might be a horribly different story, so maybe it's good news that the crisis has come at this stage.
ReplyDelete