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View Diary: An Economy On the Brink (153 comments)

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  •  Good Question (4.00)
    and I have no answer.  I would tend to think not much because the US' financial team -- the career people at Treasury etc... are pretty sharp.  Their boss, on the other hand (Snow) is an idiot of the highest order.

    "You think you can intimidate me? Screw you. Choose your Weapon." Eliot Spitzer

    by bonddad on Mon Sep 05, 2005 at 09:51:47 AM PDT

    [ Parent ]

    •  But it's going to be hard for them to spin it (4.00)
      into anything good.

      The world has seen that we can't cope with a natural disaster, have a very fragile infrastructure, and a federal government that doesn't know how to make decisions in an emergency.

      That can't be good, and I don't think there's any way they can make it look good. I think overseas investors are going to take a long, hard look at this economy before they put their money here.

      And once they look beyond the pretty facade, it doesn't look very good.

    •  Thanks (none)
      I'm not sure either, but I'm afraid the rest of the world will see a Hooverish inability to recognize a problem before it becomes a disaster, thus precipitating the disaster.

      Cheers and Hang On for what could be an exciting couple of years.  

    •  Aren't some countries (none)
      in a co-dependency trap with us?  China keeps buying U.S. bonds because they want to keep their currency low.  Would this continue?

      Keep an open mind, but don't let your brains fall out.

      by Unstable Isotope on Mon Sep 05, 2005 at 12:32:53 PM PDT

      [ Parent ]

      •  Yes indded, but (none)
        that game can't go on forever.  And the longer they hold off on the correction, the more brutally it'll hurt them, too.

        That's why Far Eastern central banks are buying ever fewer T-Bonds, and quietly "balancing" their currency reserves by socking away more non-US currencies.  

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