I was thinking exactly of the Trump axiom, I love that line. Our situation is totally different from that of LTCM. They were an individual company, not a sovereign government. I don't care what happens to Citi, for example, so much as I care that the banking industry as a whole stays solvent. Foreign entities can carve up Citi for lunch for all I care.
The beauty of the situation is that foreign governments are rushing to pump money into the U.S. We spent it all on cheap goods from them and questionable mortgages from the banks. We bought the goods and defaulted on the banks. Now those same governments are pumping money into the banks, more as a defensive maneuver than anything else. If the dollar goes in the toilet, all that money they earned selling crap to us isn't going to be worth squat, and it's not like they can take Citigroup and move it to Asia or the Middle East. And let's face it, Citi, Merrill, et al have only themselves to blame for the mess they are in. They got really, really greedy and now they are paying the price. On Jan 15, 2008 5:47 PM, Gruss wrote: > > RoMunn wrote: > > I'm not especially concerned about foreign governments investing money > in US > > businesses. As the rest of the world became more prosperous, it was > bound to > > happen. > > I agree with most of what you said except for this which is the Trump > axiom, if you own the bank a million you're in trouble, if you owe > them a billion they're in trouble. > > While that's true, it's only true if the bank is a single entity > which, in this case, it's not: we've got multiple lenders and more and > more every day. All with a stake in the US, sure, but not so much the > US as *its assets*. > > In many ways this is like bankruptcy where the lenders all gather to > decide the fate of the debtors assets. > > Another good example might be the fall of LTCM. All the stakeholders > came together and bailed out LTCM, but it be looooong gone. > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:250985 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
