The world is for sale. We will continue to see the financial institutions “de-lever” as egregious liquidity needs continue to force the sale of any assets that don’t have a government stamp of approval on them.
“Quality” assets are at fire sale prices. Get yours (but not just yet).
Up to this point, we’ve seen piecemeal approaches by the government and regulators in dealing with this problematic mess. The asshats are finally getting it together and trying to deliver a “global package” to address these most trying and terrifying of times. The obnoxious Irishman’s “GLORC” is part of that.
Looky here: this is not just a banking crisis anymore. This is not just a U.S. crisis anymore. This crisis is for leveraged players and cash players worldwide, as we have seen with commerical paper and money markets. So, place your bets.
The contagion is growing. Hence the markets will continue to sell off assets until a more comprehensive solution begins to emerge. That’s all it can do right now without massive, coordinated intervention.
What’s the Fix being proposed by our globalists?
First of all, they are working furiously to effect a restoration of banking payments and settlements in the overnight swap markets. Counter-party trust is the issue here.
Secondly, massive capital injections by governments are in the works to fix the brokenness of the current financial system. Simply playing balance sheet games and selling distressed assets to use for funding vehicles, isn’t going to solve the problem of bank insolvency. We are talking about TRILLIONS of dollars that are needed to fix the problems just here in the U.S.
The United Central Bankers of the World (UCBW) are going to have to reflate economies on a global scale that is unprecedented.
Don’t throw away your gold just yet.
Thirdly, TARP will simply BEGIN to deal with troubled assets on the books here in the U.S. It’s a small fix. However, I don’t agree with the form and substance of that bailout provision. It doesn’t really effectively recapitalize the banking system. It only gets rid of the toxic waste material clogging the system. I would have much preferred to see “The Warren Buffett Way” of capital infusion viz a vis purchasing preferred stock and warrants from these banking institutions of economic death. But, no matter. I’m just a peon.
Finally, although not desired by many true capitalists, more coordinated regulation is on the table to address matters on a global scale. Welcome to the new age of socialism. For you conspiracy theorists out there, this global crisis sets the table for the “New World Order”, elegantly and effectively. Never ask when you can take, I guess.
Keeping watching and observing, that you might be able to escape the trouble that’s still coming. This is far from over, my friends.
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