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[SPIDERMAN]

From what I have read, Asian markets (including China) are tanking also.

http://www.cnbc.com/id/19832390/site/14081545/?sky=GGL|CAMP022CNBC_Intl_News_Content|ADGP015AsiaPacificNews|KWRD018china+stock+market&__source=SI_28965890_898451866_0

As I understand it, the Chinese hold over 2 trillion ($2,000,000,000,000) in T-bills.

What happens if they decide to sell ?

B B

[BIGDOG]

The US has been the favored place for every one else to invest so now they go down with us if we go. They are wanting a fix also.

[sadunbar]

As I understand it, the Chinese hold over 2 trillion ($2,000,000,000,000) in T-bills.

What happens if they decide to sell ?

B B

To who?  Got 2 trillion laying around to do the buying?   

[SPIDERMAN]

To who?  Got 2 trillion laying around to do the buying?   

The US Treasury has to buy them sadunbar I am fairly certain that T-bills are like bearor bonds

B B

[sadunbar]

The US Treasury has to buy them sadunbar I am fairly certain that T-bills are like bearor bonds

B B

I was making a funny!     I didn't think the US government had that amount of change laying around...

[SPIDERMAN]

I was making a funny!     I didn't think the US government had that amount of change laying around...

They don't and that's my whole point 

B B

[Free]

the chinese have choices. They can try and sell those dollars which would tank the dollar more. They could buy US assets with their dollars. They can just stop buying treasuries going forward.
i suspect that ultimately the US will inflate its way out of all the debt we have.  We will run the printing presses to meet our obligations. 

Free

[iski]

I think we are in for a long recession. I do not think Congress is seriously trying to resolve this issue.  They are playing politics for partisan gain on both sides.

After this election, the more serious blame game will begin politically.  At this point, the political blame game is silly - but very costly to us - the voters & investors.  DC cannot fix this mess & at best it looks like it can band aid it.  Capitalism could fix it but it will take more time than we are used to, as it appears at this stage.  Doubt it will get a chance to since the repair appears to be a socialistic fix.

A bank panic & a huge FDIC bailout will be the next congressional bailout unless I am guessing wrong.


BTW - when you decide to take it out on "Wall Street fat cats blah blah" in actuality you are taking it out on everyone who is invested in Wall Street.  At this point  those investors are 60%+ of the US population.

[SPIDERMAN]

Maybe we should cut out the middleman and invest in busnesses privately.

Icybay, do you need an infusion of cash to build another fishing boat ?

B B

[icybay]

BTW - when you decide to take it out on "Wall Street fat cats blah blah" in actuality you are taking it out on everyone who is invested in Wall Street.  At this point  those investors are 60%+ of the US population.

Wall Street fat cat= Washington Mutual's CEO Alan H. Fishman, who has been on the job for 17 days, is bailing out with parachute worth close to $20 million, according to an executive compensation analysis conducted for the New York Times by James F. Reda Associates.

You heard right. That's $20 million for 17 days on the job ... and his company failed

If Fishman  represents 60% of the population I feel like a real loser.

[iski]

Wall Street fat cat= Washington Mutual's CEO Alan H. Fishman, who has been on the job for 17 days, is bailing out with parachute worth close to $20 million, according to an executive compensation analysis conducted for the New York Times by James F. Reda Associates.

You heard right. That's $20 million for 17 days on the job ... and his company failed

If Fishman  represents 60% of the population I feel like a real loser.

I am not about to defend moronic golden parachutes that companies pay loser CEO's.  No excuse for stuff like that Fishman deal.

What I am saying is:

most ALL retirement programs are directly or indirectly INVESTED in the stock market (Wall Street).  If we (congress?) decide to bankrupt Wall Street, we are basically bankrupting 60%+ of our populations investments - retirement accounts of teachers, businesses, police, fire, hells bells - damn near everyone with an IRA or a 401k.

Media & certain pols have done a fantastic job demagoguing this issue to the point that many folks do not realize their own futures are going down with the market.  Plus with less money to borrow, we get huge unemployment rate increases to further deepen this problem.

As far as the other 40% are concerned - if they are on govt. assistance, tax revenues will fall sharply so govt. programs will be even more difficult to maintain. If they are not on govt. assistance & they have no retirement - well they are pretty well screwed already. In other words, everybody gets screwed.

A Treasury loan is a better solution than the turdish bill today that failed, with mortgage loan guarantees at market interest. That is preferable to some stupid equity stake position that nationalizes mortgages and rewards idiocies at many levels.

[DCFIREMANN]

Well after the market took the beating it did yesterday, it will be interesting to see what will happpen today. 777 man I thought that was a commercial airliner.

Be safe

THE DAWG

[greglyon]

As I understand it, the Chinese hold over 2 trillion ($2,000,000,000,000) in T-bills.

What happens if they decide to sell ?

B B

Brian,
Experts are urging gold and other precious metals
Greg

[grc]

Our friend iski is absolutely correct.  Our desire to punish the perp's has the unfortunate but lethal effect of punishing most of the general public as well.  I personally find it ethically and morally repugnant to support the greedy SOB's who brought us to this point (executives and politicians alike), but it now becomes a question of how much of our nose do we want to cut off in spite?

One congressman actually made the comment yesterday that "we want to keep our jobs".  On the surface one might think he meant the overall job market.  He didn't, he meant his cushy seat in Congress.  If you study the list of folks who voted nay, you will find a large number of folks who are on the ballot in November, and they are scared to death to vote yes and have the voter's take the entire thing out on them.  So they are willing to add a little grease to the slippery slope rather than hold their nose and do the thing that is in the people's best interests.  Surprise, surprise!

Somehow the Congress will have to revisit this and come up with a more palatable product they can sell to the folks on main street.  I'm afraid that's going to mean throwing all kinds of nonessential pork and handouts into the bill, so that everyone will get something.  Everyone except the folks who eventually have to pay for it, that is.  I wonder if we can wait 5 weeks for the elections before getting serious about this whole thing. I also wonder what the vote would have been if it were held a week after the elections. 

I know this isn't exactly the same situation, but how about this approach.  Remember the Chrysler loan guarantee program?  Lee Iacocca agreed to work for $1 a year to help secure support for that bailout.  Let's see if the big boys on Wall Street want to do the same in return for our help in cleaning up their mess.

Jerry

[Sean M Cary]

Brian,
Experts are urging gold and other precious metals
Greg

HA, see I was correct all the time.  If all of you had GOLD bikes, you'd be good to go.

Or you can buy like hell, knowing that this is all going to come back up again...

Sean