Tuesday, September 23, 2008

Congress and the president favor a $700 billion Wall Street bailout, but they're afraid to say how they'll pay for it. - By Daniel Gross - Slate Magazine

What is the big deal about the money? No one believes in good accounting in Washington anyways (or in Cook County for that matter). What's the worst case scenario? My buddy was trying to explain to me that many/most large corporations borrow money constantly. The fear is that with this current crunch, that all the business in the world will grind to a halt and we'll have record unemployment. I doubt that whatever the Fed and Treasury are doing that it would be able to stop that. No one is buying the reassurance that the government is giving. Why is that? Maybe because U.S. Treasury bonds aren't really AAA rated anymore. They are, but the market doesn't beleive it. With a $9.7 Trillion debt and endless war in the Middle East, expensive legacy costs, the U.S. Government might not be the safest place for investment. Just a thought.

0 Comments:

Post a Comment

<< Home