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Originally posted by marg6043
reply to post by HimWhoHathAnEar
The question is how willing are these foreign nations investing in US allowed to lose as long as they get a firm hold of the US economy.
I think that for them owning mighty America worth every penny of it.
[edit on 29-1-2008 by marg6043]
According to the Federal Reserve Board website , U.S. non-borrowed bank reserves have gone from $37B to $199M (nope, that's not a typo) in the last month. We have been discussing this with Sitka Pacific Capital's Mike ‘Mish' Shedlock for the last two weeks. He concludes: “Banks in aggregate have now burnt through all of their capital and are forced to borrow reserves from the Fed in order to keep lending.” Simply put, the U.S. banking system has no reserves. In addition, the FDIC has recently begun modernizing large-bank insurance rules . We hope this is a wake-up call to everyone as to the extent of the credit crisis. Bank account balances should be used only for transactions. Instead cash should be held in the form of U.S. Treasury Bills at a conservative brokerage or trust. Under the mattress is also perfectly acceptable (your parents or grandparents had to do it!).
Originally posted by cpdaman
Fed cut 50 bps and then the market had a bi-polar reaction
first elation, then massive selling (down 250 in last 45 minutes from highs) to finish day down about 40.
Originally posted by marg6043
My daughter is telling me that in the bank were she works is been an increased of savings bonds as old as back in the 70s that has been cash out by their owners, God figure what they needs ....
Major rating agencies are holding off downgrading bond insurers MBIA and Ambac Financial Group while they attempt to work out a bailout plan, bankers working on the bailout told CNBC.
States and cities that issue municipal bonds, meanwhile, could see their own bonds downgraded because of questions about the insurers' ability to back up those bonds.
Banks could also be hit. According to Meredith Whitney, banking analyst at Oppenheimer, U.S. financial institutions could face fresh write-downs of as much as $70 billion if the bond insurers lose their top rating.
For that reason, the issue of downgrading bond insurers has become politically sensitive.
At least they didn't lose as much as their customers. The stock market is in distress, bond insurers are looking for a $200 billion bailout, junk-bond markets are at risk of further losses and life-, home- and auto insurers' risk has not yet been fully assessed.
The Fed's rate cuts are only bandages. They'll succeed at weakening the U.S. dollar against foreign currencies, and that encourages foreign governments to buy American institutions at fire-sale prices. That can't be good for America.
If the stock market means nothing, then why do you keep contributing to this thread?