Alot of peoples statements that the government will win specifically on this deal don't take into consideration the absolute interest payment increase on all of our bonds b/c of swapping 700b in US treasuries for US crap. That could force us to pay higher rates on our bonds which needs to be factored into total cost. But I think the indirect financial benefits to the government in the form of credit, jobs and economic strength are undeniable. As George Soros' theory of reflexivity: the benefits will reverberate through the economy and lead to a perpetual growth in tax revenue to the government even if the government (USA Hedge Fund Inc.) doesn't make money on the 700b deal. Where I think they'll make quite a bit is the AIG deal with an over 11% interest rate combined with 80% collateralized loans. Though they'll take it on the chin with fannie/freddie as they really got the crap of the mortgages as guys like Cisneros and Andrew Cuomo increased the mandates towards 'leveling the gap in housing' so the gse's have the REAL crap.
Only if there is a feeling that the country is in turmoil. If the people buying the bonds see that we didn;t lose to much then there is no reason for the dollar to go down. It would be just like we bought some bonds for equal value. If they see we lost 50% of the money they loaned us THEN the dollar will go down.
I have no desire to skeet all over our current president, so no, that president will not look as bad as this one.
