Posted 10 November 2008 - 12:19 PM
November 10, 2008
Barack Obama backs plea for Henry Paulson to extend bailout to car industryhttp://business.time...icle5119805.ece
Also from the article.
Mr Wagoner, who said that the liquidity crisis has put an end to GM's merger talks with Chrysler, also gave warning that banks had stopped offering credit to car companies to fund their restructurings
Remind me again, what was the idea behind TARP money? I think the banks are either going to hold onto the new money or invest it in treasuries.
Modern money "shorts" the currency, and is backed by debt. The debt is real. A debt deflation will lead to a prolonged period of deleveraging, where the short-covering of currencies will strengthen currencies relative to asset prices. At the global level, in the FX market, central currencies will benefit from deleveraging at the expense of peripheral currencies. Due to instability and uncertainty, gold will benefit against all currencies as it continues to be re-monetized.
Hold on to your hats for hyper-deflation, where cash is king, and gold the King of cash.
[Silver? A Volatile Queen].