"F. George McDuffee" wrote in message
...
On Sun, 12 Oct 2008 02:19:02 -0400, "Ed Huntress"
wrote:
snip
The "Spondulick" numbers are the enormous ones that have people alarmed,
but
I have to wonder what happens when someone tries to "withdraw" or cash out
those paper values and they can't be cashed, because there's nothing
behind
them except the defaulted mortgage or whatever and some small margin of
reserves.
snip
=========
Indeed, and it is at this point that the typical "FX" problems,
caused by a "dirty float," kick in. As long as there was at
least an equal amount of $USR-$USV as there was $USV-$USR no
problem. This is no longer the case and the classic "current
accounts trade deficit problem," with the $USV:$USR ratio being
driven continually down, results.

The violent reaction to the very mild enforcement [actually more
of meek request] of the US legal/tax code mandates that all
accounts must be kept in $USR, as implemented by Sarbanes-Oxley
"mark to market," shows how fragile the Spondulick economy is.

"AGIO" is a word sometimes encountered in crossword puzzles, but
it has been and will be the source of considerable wealth for the
$USV-$USR conversion specialists.
http://www.answers.com/topic/agio-1

The smart money boys may have devised another way to get a 1:1
exchange rate. The rumors continue to swirl that GM is on the
verge of trading the 49% of GMAC they still own to Cerberus for
Chrysler. This would convert Cerberus Capital Management [a PC
and hedge fund, via the GMAC bank] into a one bank holding
company with direct access to FRB and Treasury funds, and
GMC+Chrysler into an industrial organization that might be "too
big to fail" (at least until after the elections and possibly the
January distribution of executive "performance" bonuses at GM).
http://www.businessweek.com/magazine...0/b3953149.htm
http://www.businessweek.com/magazine...0/b3953110.htm

Of course, the US taxpayer takes it in the shorts coming and
going with this "reorganization."

Any thoughts on this?

Not now. Maybe after I peel all these apples we just picked.

--
Ed Huntress