This is the ball. Everything else is just a distraction from the main event. Once foreigners decide that it is just too risky to continue to loan the US money, we will be forced to dramatically increase interest rates and/or to drastically cut our spending and/or to outright print money ala Zimbabwe (versus what we do now which is finance a bunch of stuff by getting loans.)
"Merrill Lynch has warned that the United States could face a foreign "financing crisis" within months as the full consequences of the Fannie Mae and Freddie Mac mortgage debacle spread through the world."
Keeping Your Eye On The Ball
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Posted - 07/24/2008 : 07:42:54
