Market Chasers

U.S is bankrupt: March 19th, 2009

Here is an interesting article that was posted on CNBC. Take a look if you guys are interested:

http://www.cnbc.com/id/29769858

For those of you who don’t like reading or are too impatient to take 30 seconds to read the entire article, here are the cliffnotes:

1. The U.S is technically bankrupt because the country has nearly four times as much debt than the size of the economy.
2. Fed’s decision to buy treasury was a terrible idea long term, great idea short term. To elaborate on this, Washington strikes up the printing presses, cuts down trees and prints monopoly money. With this, they go out and buy treasuries, this effectively lowering the yield and driving up the value to buy into the treasuries. The U.S is attempting to have people sell off bonds and treasuries and buy stock (GOOD LUCK!)
3. Hyperinflation
4. Economically for the short term, it is good because it provides more liquidity into the system, a.k.a money on the street.
5. Buying up treasuries is great for Asia
6. Europe is in trouble (but hasn’t Europe been in trouble for quite some time now anyway?)