posted on Sep, 25 2008 @ 12:35 AM
Originally posted by stander
The speech was intended for broader audience. There are folks around the world right now who have second thought on buying US Treasury bonds and stuff
the way it used to be. So it's better to say "good evening" than "my fellow Americans."
I don't know if that's the reason or not, but you're absolutely right about this being watched around the world.
While all of this has been going on in the USA, everyone else has been very busy with contingency plans, both nationally and personally - making sure
that their economies (and personal finances) are as protected as possible, should the worst come to pass. Here in Japan, there's been a bit of a
bargain sale shopping spree as well - something that's likely to continue.
From what I've been seeing, people here are waiting to see if the bailout happens. If it does, that means that the USA will continue to be a solid
investment (as the government is willing to back the economy). If the bailout doesn't happen, you are going to see a very steady (and hopefully
controlled) withdrawal from the US economy by pretty much everyone, followed by a bit of firesale acquisition of US companies foreign assets (see:
Lehman Asia). This possibility of a bailout is the ONLY thing keeping people from getting out entirely: the confidence level in the US economy at this
point is pretty much nil.
Having read through the proposed bailout, I can't say it looks pretty for you guys over there. But here's the thing: if it doesn't happen, things
have the very real potential to be significantly worse. All the things like red and blue partisan politics and which administration is to blame is
irrelevant to the rest of the world. If the government tries to fix things with a bailout, confidence will be (minimally) restored. If congress balks,
the problem stands - and people will pull out until the dust settles.
That's how it looks from here, anyway. Your mileage may vary.