httphttp://news.bbc.co.uk/1/hi/magazine/7657178.stm://
Look at the financial whizz kid that is Mr brown and his cronies
What is the most vital asset to keep for times when we are in Need oh Gold.
i know lets sell its when its at a low then less than 10 years later we will have buger all reserves
below is one dealer maties view of the great baill out today
Who are they going to lend to? Debt drowned consumers (shop harder people)? Or perhaps more mortgages and commercial property loans (hmmm against rapidly deflating assets...not very smart)?
Everybody is still pretending this is a liquidity crisis - that's total - the liquidity problems in the banking system are a DIRECT result of massive, MASSSIVE insolvency.
They should have covered all depositors and then let the insolvent banks go bankrupt. Cleared out the balance sheet's loans through the bankruptcy system (recognising the actual value of the awful assets they still refuse to acknowledge). Then, and only then, the government could have helped to seed RBS 2.0 or whatever if they really want to. This would have off all the banker fat cats though; equity to zero; bondholders hurting: Tough I say.
Have no doubt that today the taxpayer's money has been away.
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner - as the result of voluntary abandonment of further credit expansion, or later - as a final and total catastrophe of the currency system involved."
- Von Mises, 1949
We are all doomed.
Quick wheres me SMB mustn't waste time