Well, now it looks like the President must explain himself to a group of world leaders in New York. The papers are saying that the U.S. economy and the rest of the world are inextricably linked and they are right. Now, as a result of this greedy financial fiasco, you can bet that the rest of the world will be very cautious about linking up with the U.S. economy from now on. The U.S. is now beholden to all those foreign governments and big foreign investors for buying so much of the debt guarantees (in the form of bonds). What would happen if the U.S. defaulted? It is not unthinkable. A few months ago, who would have predicted that the country would be left with no large investment banks to speak of? Next up for your tax money? The auto manufacturers. Keep this in mind, the government is not bailing out the economy - it's bailing out the big Wall Street firms which lost billions. Wall Street is holding the economy hostage by saying that it is no longer credit worthy and no bank will lend it a dime so that their enterprises can keep going. Who knew thay had zero liquidity? Of course, a seizing up of the most important credit markets will cause the economy to sputter in a very big way. What a way to do business. The economy will survive this turmoil but the rest of the world will now ponder this sad and risky scenario very seriously and begin to stay clear of the U.S.
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