Sunday, October 12, 2008

POTENTIAL ECONOMIC SEIZURE, A NATIONAL EMERGENCY IS UPON US, By Karl Denninger

How real is the danger?

1 comment:

mikemathew said...

The US has also turned itself into the largest government-owned hedge fund in the world. By injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities from them, the US has also undertaken the biggest and most levered leveraged buy-out in human history, having a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity). This is the biggest and most socialist government intervention in economic affairs since the formation of the Soviet Union and Communist China.
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