Monday, Jul 21, 2008
Morgaging the Future.
International Herald Tribune: Is America too big to fail?
So the government offers its rescue of the mortgage companies, and foreigners keep stocking the government's coffers. "They don't want the U.S. to go into the worst downturn since the Depression," Tilton says.
But all the while, the debt mounts along with the costs of an ultimate day of reckoning. Debate grows about the wisdom of leaning on foreign credit, and about how much longer Americans will retain the privilege of spending and investing money that isn't really theirs.
Bailouts amount to mortgaging the future to stave off the wolf howling at the door. The likelihood of a painful reckoning is diminished, while the costs of a reckoning - should one come - are increased.
Posted by sold out @ 05:55 PM (631 views) Add Comment
6 Comments
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1. new_order said...
Hey guys,
If property is going to sh1t but you had 30k to invest, what would you choose? Looking for some pointers.
2. Campin said...
& were too small to lose,
the man who founded Fannie, which later gave birth to Freddie, was Franklin Delano Roosevelt, who wanted to inject liquidity into the mortgage market in the framework of his New Deal to save the American economy. 70 after the New Deal, here we are again.
30k is that dollars or sterling?
3. montesquieu said...
Premium bonds.
what the hey.
4. jack c said...
Look @ Indexed LInked Nat Savings - secure, Tax free, inflation proofed and if push comes to shove accesible - once the markets settle down equity backed investments will provide good opportunities once more.
5. harold said...
Don't waste your time (and money) on paper assets.
6. jamonit said...
Don't know. Same problem. I've put some into gold, but it's already gone up a long way. So who knows? Perhaps some good renewable energy stocks for the longer term? But eco stocks are driven by govt policy and this govt is broke so might not be willing to improve market conditions for anyone. Cheap food outlets like walmart? Maybe nat savings. I have a chunk in a high int account at northern rock, 'cos I can't lose it there.