The timing of the credit crisis and who it helps

[abumbyanyothername]

1) The government is not making this up. Various measures of credit risk spread have spiked violently in the last week. Indicating that someone, who controls a lot of lendable money, does not want to lend to banks and must park its cash in Treasury debt. Even at NEGATIVE interest rates as happened this week.

2) There are only two sources of capital in the world capable of orchestrating that kind of move in the bond markets -- China and OPEC (or both acting together).

3) China is now overtly out in the open that it won't lend to US banks until the package is passed.

4) In my own humble opinion (or not so humble, I feel my 25 years as a bacterium working in the bowels of the financial system entitle me to have a bit of a voice), foreign banks have launched this assault on the US financial system at this time to force a regime change.

If McCain starts to make a comeback, they will launch another attack -- somehow, some way.

Obama's economic team would do well to start from day 1 to insulate us against this kind of attack in the future. Priority 1 on that front is 100% homegrown energy. At any cost. It's no longer a market or environmental issue, it's a national security issue.

[Kdillard]

1. I completely agree with you. The part about the Chinese

refusing to give loans to US banks made my eyebrows raise. Hopefully if the trends continue we will have Barack Obama in office and he will do what he has to do in order to put us on the road to not having China be able to mess with the US economy.

[RoccoR5955]

2. Simple soultion...

No loans, no Chinese imports. Plain and simple!

[FrenchieCat]

4. No credit, no money, no consumers in US for Chinese Imports.

The US has no leverage.

That's the part you are missing, perhaps?

[FrenchieCat]

3. The business world doesn't want 4 years of the same......

China and Europe do not want McCain.

They will do what they have to....

and by extension, so will American Big Business.....with Warren Buffet leading the charge.
This includes GE, Disney, etc....

They all have a stake, and they know that China have got us by the balls financially.