Wasn't it Bernanke who claimed that the US was in good condition before Lehmann Brothers crashed, bank of america got bailed out, America insurance group went bankrupt, and the supprime mortgage underwriters and guaranteer's Freedie and Frannie Mac became Government owned?
I agree on one thing, Bernanke and Obama stating the economy is in a good position so that investors panic less. However, everyone is being fooled and the funny thing is that everyone knows it but goes along with it.
No doubt there will be more stimulas packages to come. All economies, developing and developed, are talking about their debt positions. Even Obama said that the US debt position will not be able to carry the rest of the world out of crisis. What is inevitable is that the printing press will eventually be overworked and there will be a bigger crisis then the world has ever seen - a sovereign debt crisis. It will be Argintina 2001 all over again, however this time it will be the US and Europe, where China will propser. Dont forget about India as they own the greatest percentage of the worlds gold.
The only way I see US getting out of trouble is to drill oil offshore. The US has an incredible amount of OIL offshore however have regulation an environmental protection all over it so that it cant be drilled. The US is smarter than we think, they are in Iraq for OIL and they have more back home when that dries up.
The US government know that their financial system is going to crash and then they will have the last remaining oil when the world has finally arrived at Peak Oil. The US may survive but I highly doubt it.
ASX will be down.. great buying opportunity for anyone who has the reserves onside.
Buy Banks, Buy companies who are fundamentally sound with options dated past 2012, Buy anything that is in the red greater than 5%. Easy 5% profit to be made when US goes back into green tomorrow night.
Here is your chance to earn greater than the 10 year bond rate in one day.
