Obama Rocks! Today! the most serious attempt against more wars! (829)

I think that I have put together a few dots on why the Stimulus packages to the banks is not getting to main street USA. Banks are not lending to the car companies to aid them. SBA loans are hard to come by. Follow a little.

Yesterday, Fed Treasury Chairman Geither said to a questioning Peking University student asking about the security of the $770b
Chinese Investment into the USA (mostly thru T-bills).

Geither replied.."the USA financial institutions are the most deepest and liquid in the world."

Where as President Obama only a couple of weeks ago said.....
'we are out of money. Into deep deficits.'

So what gives? Who is talking straight to the issue of the countries financial liquidity. They both are and they both are talking smoke.

Geither is in reference to the banks that the two TARP financial package went into. Obama is talking about the countries budget, expenses and revenues.

A individual US citizen can buy T-Bill directly from the FED Gov't. But a foreign party or gov't cannot. They don't have the social security number or other numbers for such a transaction. But banks 'bundle' T-Bills and other government financial paper for foreign parties to buy. They act like 'holding companies' in this business, and its is a very legal business activity.

Those socialist Chinese....wanting interest and principle security on their investment in the US. They almost sound like capitalist nation. :-) But Geither's answer had to leave the Chinese student a little confused, in that the US banks were only 8 months ago in a liquity crisis not seen since the great depression.

And here is where both are blowing smoke. The banks were bailed out by the FED gov't...now they have sold billions to the Chinese and other foreign investors in paper....the banks are holding the FED bailout money to cover the interest and secure the principles to these foreign investors. That reduces the amount of FED bailout money for main street America.

Now who is being greedy, Stress? Vinny? Janski? Obama administration is double dipping the well some. They tell foreign investors...all is well in the US. They tell US citizens we are bankrupt. In the mean time, GM and Crystler cannot get bank loans or bailouts to keep going.

And if the FED fails to make pay on the paper, guess who owns the US banks?

Also remember when Barry Franks said 'we need to reconsider what money is." The FED Gov't under Obama is shifting to financial paper (e.g. T-Bills and other paper), from real estate based
economy. Is what I think.

Well if you gotten this far in this lengthy post. Now consider the $6000b in the global diarivites market that the banks have made. That the Obama administration now wants to regulate the speculation in this market.

My thinking is this here. The Obama administration sees this massive market as competition to its FED paper markets. Best way to restrict a market and gain competitive advantage.....regulate it.

Greed will get you every time.

I would buy your answer, Jvaski ...if President Obama and his Treasury Chairman were on the same page. But they are telling opposite stories here.