*Real REASON for the BAILOUT* hint: It's GOOD for you

[rpfan2008]

Why Lehman was not bailed out?......................................................................................................
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*CHINA* Blackmailed US for Bailout

This guy Yu (Yongding) is like China's Chief Economist.

``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23. ``If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets.''

An agreement is needed so that no nation rushes to sell, ``causing a collapse,'' Yu said. Japan is the biggest owner of U.S. Treasury bills, holding $593 billion, and China is second with $519 billion

``Whether some kind of agreement between them to continue to hold Treasury bills is viable, I'm not sure,'' said James McCormack, head of sovereign ratings at Fitch Ratings Ltd in Hong Kong. ``It would be unusual. If it became apparent that sovereigns in Asia were selling Treasuries the market would take that quite badly, it's something to be avoided.''

China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. China is not in a hurry to dump its U.S. holdings and communication between the two nations every ``couple of days'' is keeping Chinese leaders informed and helping to avoid a potential panic, he added.

source



Lehman?
Lehman's Fuld: Where was our bailout?

Why were Fannie and Freddie bailed out? Because our Chinese masters had to be bailed out. The Chinese accepted Fannie/Freddie bonds as collateral for their war loans. And so recall: Paulson made China bond holders whole for their Fannie/Freddie holdings while all the other shareholders were wiped out.

And why was Lehman Brothers not bailed out? Because the Chinese didn't own any, only Chavez of Venezuela had a few billion tied up there. No reason to bail him out.

What is the urgency for this bailout? Good question, but one possible answer is China.

And let's not forget that we're printing money faster than ever: US banks and money managers are borrowing record $188 billion PER DAY from Fed.

http://www.dailykos.com/story/2008/9/26/2754/52595/271/610964







without the bailout Chinese would have triggered panic selling of US treasury bills saturating the markets and eventually causing a collapse. The bailout was a $850 billion time freeze/ (Max Payne) Bullet time so that you can prepare.

 

[Dr.3D]

I kinda figured that was what was happening.