[Tfug] China and the other big US paper holders have issued a margin call

[ganntech at comcast.net]

I think the reason that Paulson can't give a straight answer to any of the questions asked of him is that this "crisis" is really a margin call being made by the major holders of US securities. China and our friends in the middle East who own a bunch of US bonds told Paulson and Bernanke that something has to be done to prop up the dollar or they would ,as a group, dump all of their dollar denominated stuff right now.

Congress, the banks, the administration are all complicit with allowing these toxic securites to be created and sold, and now the people we sold them to want their investments protected or their money back. Maybe Chinese collection methods are less forgiving than our own.

The big problem, as I see it, is that whatever is enacted won't matter. Interest rates will still go up, the stock market will still crash and our foreign partnters will be forced to sell their dollar investments for whatever they can get for them. The markets will run their cycle despite the puny efforts of man to control them.

-------------- Original message -------------- 
From: Jim Secan <jim at nwra.com> 

> At 12:26 PM 09/25/2008 -0700, you wrote: 
> >Funny - that's not what Harry Reid was saying 2 days ago. 
> 
> Although I am often characterized as a hot-button never-say-die Democrat, I 
> don't always agree with the Democratic leadership. Frankly, I'm not overly 
> fond of either party's leadership of late. I'm reminded of the old joke 
> about the "leader" who says "there go my people, I must get in front of 
> them so I am seen to be a leader" (as the lemmings head for the cliff). 
> 
> Jim 
> *---------------------*-------------------------------* 
> | Jim Secan | Northwest Research Assoc, Inc | 
> | (jim at nwra.com) | 2455 E. Speedway, Suite 204 | 
> | (520) 319-7773 | Tucson, Arizona 85719 | 
> *---------------------*-------------------------------* 
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