Re 'The Bank of America Mortgage Settlement Fiasco'
No Logos,on the recent attack on the euro
From March onwards I have written a book on the attack on the euro, an attack without logic. Seemingly, that is. The US of A is in a tight spot, walking a tight rope, clinging on hope for the better while behaving at his worst. What we read in the flabbergasting story of Countrywide is another affirmation of the lack of logic within the checks and balances among US authorities, where the Fed, the FDIC, ministers and policymakers and the entire ramshackle structure around financial well-being of the State and customers is, well, running amok, really.
For the big banking businesses suffering terminal cancer with infusions of mega-dollars to stop the hemorrhaging within have a new scandal to cope with: Countywide. Quintupled its outstanding debt in six years from $ 650 billion to a whopping $ 3.8 trillion. Whoops, and still no alarm bells ringing! In the end, going through a lot of denial and what not, BoA, the new owner of Countrywide, choose to beggar thy neighbor once more and collected some taxpayer money: $75 billion of it. With this shear endless queue of freeloaders on the (future) money American people earn, it is no longer feasible this country will be able to get back on track anytime soon. If I were to predict the future, I would bet on the dollar, short. Some of those too-big-to-fail banks and hedge funds, well, they will be raking in masses of money, payable in yens I suppose, in yuans perhaps...
And so now we have entered a war among countries over how to price the respective currencies, the US $ against those of China, Singapore, Japan and because of what reason you gather? Because of cheap dollars, plenty of cheap dollars, for the Fed chose to lower the interest rates to near zero. A roller-coaster string of events, cliffhanger after cliffhanger: is Hollywood writing this "epic" story of crooks or is Wall Steet doing that?
Next question: when will those American cowboys take another wack at the €uro?
Oct 19 2010 - 2:23pm