The worries in markets continue as they have no firm details from the Government on the banking plan. The USD and the Japanese yen rose against most rivals, and gold futures were up $12 an ounce to 920. If Geithner can clarify the details of the new Bank Bill soon that will give the ‘bounce’ legs. Clearance of Obama’s stimulus and a vote ASAP could take it further, with a chance of recovering most of the losses by the weekend.
Paulson looks like a damn genius compared to the tax-cheat-market-frightener-deer-in-the-headlight-looking Geithner. His plan was long on ideas and short on details.This guy should resign.
Until we get clarity we are headed for new lows on the SPX. 800 is key support and 750′ish is the low. Be careful trading out there.
This is the beginning of the end. China wont buy US Government Treasuries anymore without a guarantee (which can only be Gold IMO), so the fed will buy the treasuries flooding the market with printed dollars and devaluing the USD, which in turn will deter the rest of the world from investing in the US, and so comes the BIG collapse.
China Needs U.S. Guarantees for Treasuries
Feb. 11 (Bloomberg) — China should seek guarantees that its $682 billion holdings of U.S. government debt won’t be eroded by “reckless policies,” said Yu Yongding, a former adviser to the central bank.
The U.S. “should make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way,” Yu, who now heads the World Economics and Politics Institute at the Chinese Academy of Social Sciences, said in response to e-mailed questions yesterday from Beijing. He declined to elaborate on the assurances needed by China, the biggest foreign holder of U.S. government debt.
Benchmark 10-year Treasury yields climbed above 3 percent this week on speculation the government will increase borrowing as President Barack Obama pushes his $838 billion stimulus package through Congress. Premier Wen Jiabao said last month his government’s strategy for investing would focus on safeguarding the value of China’s $1.95 trillion foreign reserves.
China may voice its concerns over U.S. government finances and the potential for a weaker dollar when Secretary of State Hillary Clinton visits China on Feb. 20, according to He Zhicheng, an economist at Agricultural Bank of China, the nation’s third-largest lender by assets. A People’s Bank of China official, who didn’t wish to be identified, declined to comment on the telephon
