Freddie and Fannie nationalised!

baby_boomer

baby_boomer wrote: »

a turning point in the slow decline of America from its position as world Hyper-Power.

Observer

"...The changes afoot are both geopolitical and financial. Confirmation that one of Wall Street's most pre-eminent investment banks, Morgan Stanley, headed by John Mack, is in talks about selling a 49 per cent stake to the China Investment Corporation is a development that is rich in symbolism.

Communist China, the new superpower of the East, is coming to the rescue of capitalist America, which must pick up the tab for years of reckless lending by the banks, consumer excess and light-touch regulation that allowed the explosion of derivatives to go unchallenged and which brought the world economy to the brink of disaster.

China has accumulated billions in foreign reserves while America has effectively bankrupted itself; it cannot be long before the Chinese are welcomed into the US to buy stricken assets that were previously considered national icons - General Motors and Ford look particularly vulnerable.

In a nutshell, the crisis has underlined the fact that US power is ebbing away and that free market fundamentalism has become an ideology that is beginning to look as outdated as the Leninist doctrine of democratic centralism...."

WTF?_2

baby_boomer wrote: »

China has accumulated billions in foreign reserves while America has effectively bankrupted itself; it cannot be long before the Chinese are welcomed into the US to buy stricken assets that were previously considered national icons - General Motors and Ford look particularly vulnerable.

In a nutshell, the crisis has underlined the fact that US power is ebbing away and that free market fundamentalism has become an ideology that is beginning to look as outdated as the Leninist doctrine of democratic centralism...."

I don't think that the Chinese will be allowed to spend their dollar reserves on key US assets, that's the problem.

As it stands, the Chinese and Gulf States could buy out most of Wall Street and US big business but they simply will be blocked from buying up anything 'important'.

eg: http://en.wikipedia.org/wiki/Dubai_Ports_World_controversy

It's only a matter of time before the Middle/Far Easterners conclude that continuing to accept 'little green pieces of paper' with an IOU from Uncle Sam written on them in return for irreplaceable oil or goods manufactured at the expense of ruining their own country and turning their citizens into worker slaves is a bit of a hiding to nowhere.

That is when the merde hits the fan. I'm guessing that the US is counting on its overall military supremacy to mean they can simply walk away from their debt. But for sure what comes around, goes around.

Uncertain times ahead, not a great time to be debt and certainly not good for house prices.

mewbie_2

!!!!!!? wrote: »

Uncertain times ahead, not a great time to be debt and certainly not good for house prices.

At times like these a quote from Churchill can stiffen the sinews..

"Never... was so much owed by so many to so few".

Oh.