Paulson Plan Pisses Me Off | 8 comments (8 topical, 0 hidden)
We borrow it from China... (none / 0)

and the other sources of funds for Treasury Bills - world banks, retirement accounts, etc.  It is likely this will cause the interest rates to go up - the supply of T-bills just got a lot bigger, so where is the demand?  Especially since there is a possibility this plan might not work at all, and it takes the Federal Reserve down with it.

But the world banks and China hope that this works, and will do what they can to help it work.  After all, all the US debt they own will be worthless if the Federal Reserve defaults.

by rbruck on 09/19/2008 12:22:26 PM EST

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relevant article (none / 0)

Here is an article from CNN business titled:

Why China Won't Come to the Rescue 

by bfaul on 09/19/2008 01:04:31 PM EST

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Paulson Plan Pisses Me Off | 8 comments (8 topical, 0 hidden)