Surprise, Surprise!!! The Country which symbolized "Free Markets" and embraced "Capitalism" as a way of life is now doing the unthinkable. Yeah, they are going the socialist way...

The woes brought about the problem of excess liquidity and greed has now forced the American Govt to take over many of the Financial Major companies. For record, they now own around 80% of AIG, have bought in all the problematic assets of Bear n Stearns, and they own the biggest mortgage firms of America Freddie n Fannie, and they have recently pumped in 247 Billion USD to bail these firms out the liquidity crunch.

Yeah u r reading it right, Add to this the fact thy ey have fixed floor prices for the stocks of Financial companies, prohbited Traders from shorting the stocks of some 699 financial companies!!! this country is now truly turning socialist.



The solution to the problems caused by the issue of Excess Liquidity seems to be Inject more liquidity into the system. US govt has spoken of a 700 Billion Dollar rescue plan and one strongly feels that even this wont be of any help unless the Fund Managers are not going to be monitored and questioned for taking decisions without evaluating the risks or taking decisions for personal gains fully knowing the risks involved.

So where does US go from here? By the looks of it,it seems that we have not seen the end of this problem, for the problem seems to be so deep rooted. US needs to save, go through a period of real consolidation where u are not going to have great results reported by companies, less sales and stuff but there seems to be no other permanent way out. Start Saving Uncle Sam.

P.S:The only silver lining for US in this whole episode is the fact that there is still no country which can substitute the US as the Consumption Giant, now that means all the other countries are trying desperately to keep the US afloat so that their own interests are protected. Constituting 40% of the Global GDP the US is still the Engine of the World Economy, notwithstanding the fact that its Debts are humongous to say the least.