Thursday, December 18, 2008

The Debts of the Spenders: Detroit Bailout And Treasuries

Detroit will NOT be bailed out. Instead there will be a negotiated bankruptcy.


Because of the Treasury ponzi scheme. EVERY single US financial print media - WSJ, Financial Times, Investor's Business Daily, Barron's, etc. - is against an auto bailout. At least in the UAW's, Michigan politicians', and auto corporations' proposed form of TARP funding.

A bailout will undermine the shadow banking system of Treasury swaps and TARP re-capitalization of the financials. The money would be going into the real economy - UAW, creditors, Detroit councilmens' districts, etc. - as opposed to staying w/in the digital boundaries of the Fed's playland.


In Debt We Trust said...

Update - Detroit received an emergency loan line from the TARP program that gives the Big 3 enough money to last until March 2009.

This is NOT a bailout as the issue of their solvency, business model, and other fundamental issues have not even been addressed. It is putting a band aid on a terminally ill smoker.

Blog Archive