economic crisis

US Capitalism is attempting to create a "reset" button for its collapsing imperialist economic system.
A huge "dumpster" for bad debts and bonds is being created by paulson /bush for the finance capitalists,so that the US taxpayer will be forced to pay for their now to be socialized losses.

After the finance capitalist huge profits started to get thin or even non-existent they have kindlyagreed to pass on the bad debts they have created to the taxpayer in order to save the system for the rest of us .

Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds

$376 Billion in Chinese Agency Bond Holdings .

International Pressure from international capitalism builds on Bush for a bail out or he will preside over the  complete collapse of the dollar hegenomy system.

Can the U$ weasel out of its obligations and still save the dollar without hyperinflation ?

The US is Desperate to plug its leaky dollar tub.

IndyMac Seized by U.S. Regulators Amid Cash Crunch July 11 (Bloomberg) -- IndyMac Bancorp Inc. became the second-biggest federally insured financial company to be seized by U.S. regulators after a run by depositors left the California mortgage lender short on cash.

http://www.bloomberg.com/apps/news

pid=20601087&sid=afqgUyWiMPuY&refer=home

Fannie May , Freddie Mac the "government backed" mortgage giants in the US `Insolvent' After Losses X-Treasury president says.

  "  Chances are increasing that the U.S. may need to bail out Fannie Mae  and the smaller Freddie Mac, former St. Louis Federal Reserve 

  Australian House Prices Fall Most in Five Years on Higher Rates.

June 7 (Bloomberg) -- Australian house prices fell in the first quarter by the most in five years after the central bank raised interest rates at the fastest pace in more than a decade.

The median price for houses fell to A$458,488 ($439,644) in the March quarter, down 2.7 percent from the previous three months, the Real Estate Institute of Australia and Mortgage Choice Ltd. said. Apartments also fell 2.7 percent to A$355,297.

Most banks in the world today are effectively bankrupt ,playing pass the parcel with their debts and slight of hand swaps with the  dud bonds now on  their books that  they had Guaranteed  AAA..

They are desperately trying to rebuild a capital base  by swapping these dud bonds with bonds with real value  from the cental banks so as to desperately  try and keep functioning and to  trade themselves out of trouble as their old capital base was  destroyed.

Socialising the losses!Quote:(The banks)..” find their reserves have been eaten up too fast, forcing them out of business. This is what happened to Northern Rock, and is now happening to all the big banks.

Just how dislocated are the share markets  from what is  happening in the world financial system?

Are the fundamentals really sound .

Among the leading partners of the Carlyle Group in recent years have been George H W Bush, father of President George W Bush; James Baker III, the Bush family's attorney and fixer; and former British prime minister John Major. And as a private fund who knows what other political gangsters?

As "big Norm" would have said ,using his own immortal words on one Bankruptcy -'It couldn't happen to a nicer pack  of bastards"

Many mortgage deeds and original contracts are reported “lost”.