Editor’s Note: the article by Horacio today explains why United States has arrived at this instance saviour of their toxic financial waste, and the very serious consequences arising from this assistance from the American Government to banks operating in the country. They can leave their comments in avoids risks and risks generates mega American rescue plan? Buenos Aires, Argentina 23 September 2008 certainly that the Governments of George Bush will not be remembered as austere Governments regarding fiscal policy refers. After the great effort involving Bill Clinton put public finances in order, George Bush was responsible for destroying fiscal stability with their wars who now adds the socialisation of the costs of the crisis. How much may it cost you this crisis to the USAUU.? Maybe more than what you can imagine their authorities. Perhaps the cost goes beyond that a few hundred of billions of dollars.
Maybe it cost fiscal sustainability of the United States.UU. Americans lived in recent years a consumption boom, as long as the Government did not pay greater attention to the fiscal and external accounts, whose deficits increased constantly. The emergence of China as an emerging power, acted as principal financier of this feast for sloppy spending and consumption. This was also made possible by a financial system without control that generated funding for anyone without any kind of serious credit analysis. It is that the upward trend of the markets was the factor which ensured the sustainability of the appropriations for the financial institutions, without considering those who from one moment to another, could enter the descending cycle with disastrous consequences. The result of all this time of disorder in public and private spending is this plan consisting of purchase all toxic financial assets that the U.S. financial system institutions wish to RID, at a price to be determined between them and the US Treasury.UU.