Who is ultimately financing the injections by the Treasury?
Now that Fannie and Freddie are going into "conservatorship" -- with the Treasury injecting capital into each firm every quarter -- it will be interesting to see how Asian markets will react in 24 hours.
Will it play out like the dire predictions mentioned last week by a former PBoC official? Or have the rumors of Asian flight been true and they will therefore come out relatively unscathed?
Note: while the KRX will probably be very active on this news, the Asian "tiger" I'm residing in has been looking more like a kitten, and is pretty much broke either way. How will Japan fare?
See also:
No Silver in the Silver Lining
Updating Your Holiday Card Address Book
A small world in the land of the morning calm
Comments (1)
Bruce Koerber
"Injections" is the correct word and analogy!
This is not a minor addiction that can be quelled by inhaling or imbibing. This is so advanced and so hopelessly paralyzing that the heinous drug must be mainlined to give the appearance of relief.
Where does the injection come from? The same drug dealer who pushed this entity to its brink of death.
Where does the heinous drug in the injection come from? First of all it is produced by the counterfeiters who run the drug ring - the Federal Reserve. Then it is processed by the Treasury whose goal is to make it as potent a drug as possible. The bumbling Treasury risks making the potency lethal since the addict is terribly frail but making the drug too weak just pushes the addict along in a lethargic stupor with no visible boost!
What is the Treasury to do, what is the Federal Reserve to do? Its simple, they do what they are told by the unConstitutional coup.
Published: September 7, 2008 5:59 PM