EDITORIAL: International doubts

The key issue here is that America is bailing itself out of its mess. We're not asking Europe to come save us. Wonder if it would have worked this way if the EU was in crisis.

The conclusion does not make sense and is a cheap swipe at Bush. Here's part of the conclusion: "By changing the rules rather than letting bad investors reap the consequences .... Freddie Mac, Fannie Mae, Country Wide, AIG, really caused the problem by creating untold billions of mortgages to people who had no obvious ability to repay the mortgages. They made those mortgages at the instigation and demand of the Democrats in Congress. Thus far, the stockholders in Freddie and Fannie have been wiped out. Which investors is the author talking about? The point of the bailout seems to be to allow Congress to buy the "risky" mortgages, which will enable Congress to hide its part in creating those mortgages. Forever after, we will hear that Congress saved us from the investors, but we will never hear how. We will never hear that Congress (1) was the root cause of the mortgage mess, (2) by buying the bad mortgages, allowed the Democrat clients (mortgage holders) to stay in their undeserved homes, and (3) created another massive welfare program by getting all those uncreditworthy clients into houses paid for by the government. Yet, the author blames investors!!! Amazing!

Like the Congress of the United States, these guys are just a little late with their skepticism. What were their risk management policies when the variable interest loans hit the market and the subprimes began compounding the impacts. That should have been the determining factor for investing in the U.S. Don't start placing local blame on a global system in a free market economy. entia non sunt multiplicanda sine necessitate - Ockham. Where was their concern and action expressed at the WTO conferences from 30 years ago to date?