"Emergency Economic Stabilization Act of 2008" was terminated

Recently, the "Emergency Economic Stabilization Act of 2008" was terminated, It may cause serious consequence.

The Strength of US economy was mainly due to the debt consumsion.They borrow the money from other countries and buy goods from other countries. For example, they borrowed money from Mid-East and bought oil from them.
This system only work if other countries believe US can repay the money with its tax, its power of industries and the power of nation. In the last 50 years, it work as US survive from World War I and World War II.At that time, other countries not only lent the money to US, but also invest on them.

But recently, the erosion of export power and the habit of over-consumsion make the hidden problem worse.The US government can only make the system smooth, otherwise a disaster is ahead.They rewrote the inflation formula, the GDP counting,... in order to make people thought their economy was still strong enough to invest/ to lend. The wise bankers even invented lots of derivatives to encourage people to invest.

They are very successful. Most companies, rich people gain more wealth, and even the poor people can benefit from the soaring estate market.
But most of the wealth are built on the financial asset, and this asset are mostly interlocking derivatives and bond to even limited number of financial asset like stocks.

The disaster is, when the price drop, the people wealth drop and the system rewind.

Base on this idea, the failure of "Emergency Economic Stabilization Act of 2008", can cause wave of bankrupt in companies and cause the wall street in a futher panic. But the most important things is, most citizen have their retirement plan funds invest on stock. The wave of bankrupt may terminate their career and pension. The consequence social problem may comparable to Great depression in 1929 US.

收購談判破裂 美國第4大投資銀行雷曼兄弟公司面臨破產

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鉅亨網編輯中心．上海
2008 / 09 / 15 星期一 09:47


由於美國銀行以及英國巴克萊銀行14日相繼放棄收 購談判，美國第 4大投資銀行雷曼兄弟公司將面臨破產。

從12日晚間開始，美國政府官員和銀行業巨頭召開 緊急會議，討論雷曼兄弟公司的前途問題，並試圖恢復 市場信心。

由於美國政府拒絕為這次收購提供保證，14日包括 美國銀行、巴克萊銀行等潛在收購者相繼退出談判，擁 有 158年歷史的雷曼兄弟面臨破產。

另據《華爾街日報》網路版報道，繼放棄收購雷曼 兄弟之後，美國銀行正在與美林證券商談合併事宜。業 內人士指出，如果雷曼兄弟破產，美林證券可能會成為 下一個犧牲品。