Quote:
Originally Posted by MikesTraffic
I dont really see them attempting to stop lending, as a US crash would have world wide effects that could inevitably bring down the rest of the world. You see how it is playing out now, we hit a recession and majority of the world is doing the same. Without us fat lazy americans around to buy stuff everyone suffers :P....I do see the habits of the lending making a drastic change. I wish they would do away with deficit spending, balance the budget and learn a little about economics before they start adding on to things
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The problems in Europe are there own. They have enough to sink themselves without our help. Short term and long term Europe is fucked.
China's problem is EVERYONE stopped buying their shit and they have a massive population of people needing jobs.
Bernanke has said he can just print up dollars to buy treasuries if they do not sell on the open market. The market has clearly dared him to try it if you look at the 50% increase in the 10 year. Some speculate he may already be doing this a little...
If we can't sell our bonds our deficit spending is over
Best case (for us) China begins to put less in our bonds. They will not keep buying at the same levels. Japan is not around to help now. Japan is FUCKED.
Expect another stock market crash this year orchestrated by the government to push money into treasuries...