while Treasury Secretary Paulsen is up on Capital Hill this morning attempting to explain his 'change-up' re the $700 billion 'financial industry bailout', Foreign media has actually just disclosed the real reason for the 'change-up' !
from a 'professional investor's' BBS ...
(snip)"Nikkei Newswire: U.S. Banks Hold $5-6 Trillion Dollars in Toxic Assets
Now we know exactly what "facts" changed regarding Paulson's TARP. There is no way the U.S. govt. can buy all of that up..and just imagine how bad the British banks are...I just heard RBS is leveraged over 90 times. "(snip)
IF this Japanese Financial assessment is in fact true, it implies that ...
A. US financial institutions STILL have far more toxic financial instruments in the closet than have been officially admitted to date.
B. the $700 billion dollar US taxpayer funded bailout package amounts to 'pissing in the wind' ... and has / will achieve little more than postponing the inevitable for a few months
C. with a total all inclusive US Federal Gov't budget of just over $3 trillion dollars, America is simply incapable of bailing anybody out ... unless they attempt to simply print up $5-6 trillion dolllars worth of new money out of nowhere !
D. as the rest of the world's governments / central banks (some of which actually DO have large amounts of trade surplus money to work with) see that the US situation is hopeless, they are very likely to pull out of 'international' bailout efforts in favor of deploying their resources to help deal with problems in their own countries
E. a quiet 'run for the exits' in regard to any assets priced in US dollars is likely to have already begun !




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