US is Bankrupt

[Haddad]

no. but the US economy effects the rest of the world.

Somalia's economy isn't linked to US' economy, therefore, it will not be affected.

[Shirib]

no. but the US economy effects the rest of the world.

Somalia's economy isn't linked to US' economy, therefore, it will not be affected.

Somalia's economy just like most other countries is how ever linked to the US dollar

[mysterious girl]

no. but the US economy effects the rest of the world.

Somalia's economy isn't linked to US' economy, therefore, it will not be affected.

somalia's economy and the rest of the world linked to USA's. is a knock on affect.

[The-Screw]

do you guys ever get tired of arguing the "obvious"?

[SummerRain]

I had some co-workers who thought we are the richest country in the world....Americans are friggin oblivious to everything, thats why the gov't is robbing us and getting away with it.

[AbdiWahab252]

Ismahan,

Tolow maxa Caydh yar ee Somalida qatan waxa laga sheega ? Qof kasto ba kistiis ha goosto.

[AbdiWahab252]

no. but the US economy effects the rest of the world.

Somalia's economy isn't linked to US' economy, therefore, it will not be affected.

somalia's economy and the rest of the world linked to USA's. is a knock on affect.

[gurey25]

The US cannot go bankrupt while the Dollar is still the defacto world currency and the currency used for the purchase of oil.
Till this is changed we will pay for every dollar the they print..

[The-Screw]

NEW YORK (AFP) - The dollar gathered strength Monday, hitting an 11-month high on the euro, as news of a US government takeover of ailing mortgage giants Fannie Mae and Freddie Mac eased economic jitters.

The single European currency fell at one point to 1.4053 dollars, its lowest reading since last October. It later traded at 1.4129 dollars at 2100 GMT against 1.4260 dollars late Friday in New York.

The dollar increased to 108.27 yen from 107.65 on Friday.

Analysts said the unprecedented US takeover of Fannie Mae and Freddie Mac, which also sparked a surge on global stock markets Monday, offered hope for an easing of a credit and housing crunch.

Under the plan, the two firms will get government-appointed chief executives and shed their mission of shareholder profit. The Treasury agreed to inject 100 billion dollars if needed into each of the government-sponsored enterprises (GSEs).

"The near-term implications for the dollar are positive by way of at least temporarily avoiding a massive flight and lack of confidence should the GSEs have truly fallen," said Derek Holt at Scotia Capital.

The move constitutes a massive government intervention to contain the damage from the worst housing slump in decades, which has rippled through the banking system and led to multibillion-dollar losses for Fannie and Freddie.

The hope is that by opening up the vast coffers of the US government to the GSEs, confidence will return to the housing and financial system, minimizing any losses.

Morgan Stanley analyst Stephen Jen said the latest action shifts the picture for currency markets since many central banks, especially in Asia, have large holdings of GSE debt.

"Our view is that most foreign central banks will likely avoid investing more in US agencies in the months ahead, but will increase their buying of US Treasuries instead," he said.

"This uncomfortable substitution is only possible because the US still commands the most liquid and deep financial markets in the world and, in times of global turmoil, the dollar is still the currency to hold, especially for emerging market central banks."

Some said the plan may not end the housing crisis even if the US government becomes the lender of last resort.

"The US dollar has rallied this morning amidst speculation that the US government's seizure of Fannie Mae and Freddie Mac will 'save' the housing sector," said Terri Belkas at Forex Capital Management.

"I'm pretty skeptical of this sentiment, as the collapse of the housing market is far more complex than the funding of new mortgages."

In late New York trade, the dollar stood at 1.1311 Swiss francs from 1.1186 late Friday.

The pound was at 1.7582 dollars after 1.7653.

http://news.yahoo.com/s/afp/20080908/bs_afp/forexus

[The-Screw]

when i landed at heathrow on July 1st the pound was at 1.98 against the dollar.

[ModerateMuslim]

no worries. ama bail them out from my personal..... 8)