Truly a global economy

[Wagner]

Anyone else get the feeling in the last few days that apparently US taxpayers aren't just responsible for bailing out their own economy, but apparently the world as well?

From Andrew Jackson, 7th President of the United States of America
“Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.”

Lots of off-the-cuff articles flying around: http://www.foxnews.com/story/0,2933,430381,00.html

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The following markets have tanked waiting on a US taxpayer response:
- Canada
- Japan
- China
- Germany
- UK
- Russia
- Australia

Some interesting quotes:

"This is a bad development," Australian Prime Minister Kevin Rudd told reporters in Australia's capital, Canberra. He urged U.S. lawmakers to urgently return to negotiations to come up with a deal that will prevent further infection of world markets.

TORONTO — The defeat of the U.S. financial bailout bill sent shivers of fear through the heart of Canada's financial community Monday, prompting already anxious Bay Street traders into a selling frenzy as global economic fears multiplied. At one point in afternoon trading, the Toronto's S&P/TSX composite index plunged more than 900 points and wound up suffering its biggest point drop in history.

Japanese Prime Minister Taro Aso urged the country's financial officials to closely monitor the situation and take appropriate measures to protect the world's No. 2 economy, according to Kyodo News agency.

"We have to respond appropriately in order not to affect the Japanese economy and to prevent the financial system from falling apart," Aso was quoted as saying.

The Russian stock market shut down for almost three days when the cascading margin calls crashed prices.

China's Shanghai Stock Exchange is down 50% this year. The Brazilian bond market has taken a pounding

If the world has learned anything from the American banking meltdown, it is that chaos on Wall Street hits every part of the globe: Witness would-be oligarchs in Russia scrambling to cover margin calls, policyholders in Singapore queued up at offices of American International Assurance (as AIG (AIG, Fortune 500) is known in Asia) to close investment accounts, and - mon Dieu! - a new poll showing three-quarters of the French public, usually unmoved by events on Wall Street, worried that the financial shakeout will hurt them too.

[lakai]

What's really annoying is that most countries are also partly responsible for our economic problems. The past 7 years, Every country benefited from our economy. Now that the party is over, they don't feel like they should help clean up. If they think they can have their cake and eat it too, too bad. Only one that really sticks around to help is China. UK and Europe is like your friend who conveniently forgets his wallet whenever you go out to eat.

[Wagner]

Originally Posted by lakai

What's really annoying is that most countries are also partly responsible for our economic problems. The past 7 years, Every country benefited from our economy. Now that the party is over, they don't feel like they should help clean up. If they think they can have their cake and eat it too, too bad. Only one that really sticks around to help is China. UK and Europe is like your friend who conveniently forgets his wallet whenever you go out to eat.

Well that isn't really true. Multiple central banks in Europe and Asia have pored BILLIONS into the global money market to stabilize as best it can.

[lakai]

Originally Posted by Wagner

Well that isn't really true. Multiple central banks in Europe and Asia have pored BILLIONS into the global money market to stabilize as best it can.

Fact is All the money the ECB is pumping into european banks is not doing much to help. Yes it keeps european banks liquid, but fact is that they are making things worse because european banks are writing off losses even when they have plenty of liquid. Ultimately their markets will continue to go down until US banks have enough liquid.