America has always been a big spender on everything, their national deficit is close to 10 trillion but that measured in terms of percentage of their GDP which is 13.5 trillion is still far below their all time high of over 121% back in 1940s.
As for the chinese bank that were told not to lend money to US banks, that was just rumours by unidentified industry source, in fact China Banking Regulatory Commission (CBRC) had denied ever saying it. Its in the interests of china as well that the US recovers because they are china's largest foreign customers and most large corporations have operations in both countries where their future financial performance are tied in.
The US bailout is just a good step forward to solve the credit crunch facing the US economy. There is no quarantee that it will stop the economy from sliding further. The economy has already taken a beating first with the housing, then financials and with money stopped flowing it affected almost all sectors leading to bankruptcy, unemployment etc. It will take time for the banks to ease up on their policy and for consumer confidence to return. No one can predict the future or pick the lows but there are signs as slappi pointed where some big players are starting to mobilize their funds.
MNM Price at posting:
11.0¢ Sentiment: LT Buy Disclosure: Held
