No subject

By the way, something I suggested elsewhere a while ago was this:
rather than buying the toxic assets, which came to be known very
recently as "legacy" (to better manage the public psychology, I guess)
assets of the banks, the government should buy the debts of the banks
in the debt market at fire-sale prices and write them to zero. This is
another alternative to what is being done to improve the balance
sheets of the banks: remove the debt, rather than replace the toxic
assets with cash, which in the end goes to the creditors of the banks.
If you do what I suggest, then the banks may be willing to restructure
the debts of the households, which happen to be the assets of the
banks. If they are not then as the government you can force them to
restructure these debts, as you are the main creditor of the banks
under this scenario.

One problem with this is that many of the creditors of the banks are
the pension and mutual funds. And this is one of the main reasons why
the US government does not want the prices of the financial assets,
mostly the prices of the stocks to deflate, I guess. Most of the crazy
Americans have their retirement investments in stocks (about 60-70
percent).

Can there be a way to slow the stock-price deflation while at the same
time increasing the incomes of the Americans to get out of this mess?

I doubt it!

This is why I think things will get even messier!

But I don't think the dollar will collapse any time soon, since the
rest of the world is not doing that great either.

What currency will replace the dollar any time soon?

Sabri

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