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Us Dollar Consolidates As Traders Wonder If Tarp = Trap

Discussion in 'Finance & Banking' started by Tropo, 25th Sep, 2008.

  1. Tropo

    Tropo Well-Known Member

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    US DOLLAR CONSOLIDATES AS TRADERS WONDER IF TARP = TRAP

    For the second day in a row, Federal Reserve Chairman Ben Bernanke and US Treasury Secretary Paulson pleaded to the power players of Washington to pass their request for $700 Billion to implement their Troubled Asset Relief Program (TARP).
    However if we move the letters around a bit, TARP becomes TRAP and that is exactly how many investment managers, economists, politicians and average Americans view the plan.
    They are afraid that this is a trap for US taxpayers because they may be paying for a bailout that benefits the private and not public sector.
    Bernanke argues that a failure of the private sector would have “grave” consequences for the public sector, which is true and Paulson has finally agreed to accept limits on executive pay under the bailout plan.
    Yet, today’s price action in US stocks and the US dollar suggest that some investors are holding out the hope that Paulson’s TARP does not become the trap that keeps Americans still paying for bailout many years to come.
    Kathy Lien
    Research GFT