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View Diary: Making It in America: Building the New Economy (41 comments)

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  •  I think you are right (1+ / 0-)
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    koNko

    China and then Japan are our biggest investors. Japan probably won't recover very well.  China is dumping reserve currency in dollars.  As well as all the BRIC countries.  Brazil, Russia, India and China.

    Additionally keeping the interest rates low will help home buyers, but not attract foreign investors.  A simple look at the 20% loss of the dollar since March shoes this.  

    My biggest complaint.  Treasury loaned at no interest rate to banks.  Banks invested back in Bonds.  This created the feel good effect of both the banks and Treasury feeling solvent.  It was easy money for the banks.  No interest on the loan, but guaranteed money in return.  

    We are in a real economic down spiral here.  If you looked at the housing market it looks good, until you realize Bush and Obama okay'd the "No Foreclosure" on Fannie, Freddie, Ginnie and VA loans.  Nearly 70% of the market.  And then take a look at why banks are not foreclosing on houses.

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