The $700 Bln bailout is not about US cash. The U.S. is a debtor nation. The cash for the bailout has to be borrowed, primarily from the Japanese and Chinese. According to one person I've spoken to who knows the top Japan and China banking regulators, they are not happy about the U.S. p***ing their money up the wall.
The better informed congressmen have lines of communication to the Chinese & Japanese and know they can't sell it.
Bush in Tuesday's speech insisted the toxic assets could, if held for some years, be sold at a profit.
That's plain rubbish. If that was the case, there would be no need for a bailout. Banks could just sit on their assets until they recover in value. The problem is, they were so wildly overvalued, they are not going to recover in value.
How were they so wildly overvalued. You won't read it in the FT or hear it on the BBC but clearly the answer is lies and fraud.
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