US Govt has finally announced the bailout of its nations toxic mortgage assets from the hands of its largest 'unregulated' financial insitutions to its own account (whatever all that means). This seems to be a mockery of its ownself with no embarassment whatsoever.
The Govt allowed its own laws, its own regulations, its own supervisory bodies to create a demon of its own design and then helps them out even more when things go sour. Most benefits went to shareholders and senior executives of these institutions but when the proverbial shit hit the fan, these very same executives and shareholders wanted 'bailout' from the money created by printing currency out of thin air and creating even more debt for the severely indebted US economy.
If this is not a mockery of a US Govt gone bananas, then I dont what it is.
There is still time for many investors to invest abroad and reduce their exposure to US assets and US currency.
It is just a matter of time before things get even worse. You have been warned. As I had stated in my last posting on Sept 15th that the crisis will get even worse which turned out to be on the ball.
Meanwhile, I am currently travelling and will be back after Eid holidays in Dubai and shall make my next posting sometime thereafter.
From Fortune:
How it got this bad?
http://money.cnn.com/2008/09/26/news/leverage.fortune/index.htm?postversion=2008092614
Detailed Analysis from Financial Times
http://www.ft.com/indepth/global-financial-crisis
Stay tuned...
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