US Bailout of Foriegn Countries

[MaggieMae]

That does not include any loan, "bailout" that the EU will provide to Greece. An EU bailout, not to include the IMF, and our contribution to that will be debated in our country. Hopefully, our politicians will vote to NOT send more of our funds to assist in the bailout of a EU country that is only a victim of its own devices!

Sadly, Obama has asked Bernanke to step outside of the FED charter and assist Europe. Bernanke has done so and needs to undo his wrong which so far appears to only be promises to assist. We can not use the FED to assist the world, yet we have started to do so. Obama is the biggest shithead in the history of American politics.

That same "stepping out" was also done I believe in 2007, and the U.S. received not only its money back, but interest on it amounting to over $1 billion. (Don't have time to search for the history right now.) It's hardly a bad deal.

Fed Restarts Currency Swaps as EU Debt Crisis Flares (Update3) - BusinessWeek

Stress Sign

In a swap, central banks exchange foreign currency with an agreement to reverse the transaction at a later date. The central banks will then lend the dollars at fixed rates to firms in their countries. Dollar liquidity tightened in London last week amid concern financial institutions are holding too many assets of Europe’s most-indebted nations.

“My concern was whether or not the financial concerns for financial institutions in Europe would spill over into the United States and affect our incipient recovery,” Philadelphia Fed President Charles Plosser said today in an interview on CNBC. “Hopefully the actions that have been taken will prevent that from happening, and the Fed’s role in this, in renewing the swap lines, was an effort to help ensure that that didn’t happen.”

 

[Neubarth]

Stress Sign

In a swap, central banks exchange foreign currency with an agreement to reverse the transaction at a later date. The central banks will then lend the dollars at fixed rates to firms in their countries. Dollar liquidity tightened in London last week amid concern financial institutions are holding too many assets of Europe’s most-indebted nations.

“My concern was whether or not the financial concerns for financial institutions in Europe would spill over into the United States and affect our incipient recovery,” Philadelphia Fed President Charles Plosser said today in an interview on CNBC. “Hopefully the actions that have been taken will prevent that from happening, and the Fed’s role in this, in renewing the swap lines, was an effort to help ensure that that didn’t happen.”

From your article, "Plosser said his U.S. economic outlook is “still pretty upbeat” and projected average job growth of about 250,000 to 300,000 positions a month for the rest of the year."

If Plosser is right, we will actually have parity with actual workforce growth which is estimated to be about 270,000 - 300,000 people a month. I would be happy to see that. A little bit more and we would actually be creating more jobs than the population is creating workers. We have not seen that for two and a half years.

 

[MaggieMae]

Stress Sign

In a swap, central banks exchange foreign currency with an agreement to reverse the transaction at a later date. The central banks will then lend the dollars at fixed rates to firms in their countries. Dollar liquidity tightened in London last week amid concern financial institutions are holding too many assets of Europe’s most-indebted nations.

“My concern was whether or not the financial concerns for financial institutions in Europe would spill over into the United States and affect our incipient recovery,” Philadelphia Fed President Charles Plosser said today in an interview on CNBC. “Hopefully the actions that have been taken will prevent that from happening, and the Fed’s role in this, in renewing the swap lines, was an effort to help ensure that that didn’t happen.”

From your article, "Plosser said his U.S. economic outlook is “still pretty upbeat” and projected average job growth of about 250,000 to 300,000 positions a month for the rest of the year."

If Plosser is right, we will actually have parity with actual workforce growth which is estimated to be about 270,000 - 300,000 people a month. I would be happy to see that. A little bit more and we would actually be creating more jobs than the population is creating workers. We have not seen that for two and a half years.

Although there are a number of indicators giving the reasons for the economy starting to rebound, my own theory is the simple resiliency of the American people. I think it all comes down to just about everyone saying we've had enough, so we might's well bite the bullet and jump back in the water. While it may not be as smooth sailing, at least it's better than staying ashore and shouting at the tides.

 

[georgephillip]

Another possibility for our near-term future can be found in this May 11, 2010 Update from Harry Dent.

Harry sees a possible DOW peak by August 2010 between 11300-11800.
Followed by a possible four month CRASH to DOW 3800 by January 2011.

This "recovery" could very well turn out to be a manufactured mirage designed to lure investors back into an economy that is super-saturated with debt.

Dent argues that out of a total debt overhead of $102 trillion that includes all individual, family, business, and government debt, including the unfunded liabilities of SS and Medicare, the single largest component of that burden is financial sector debt, currently standing at $17 trillion.

There is a possibility the market's recovery since March of '09 is simply the rich making one final pillage before the Second Great(er) Depression.