Reply to "$1.2 TRILLION SECRET"

I've read some articles that says quite a bit of the money went to foreign banks...I have uncirculated letters from hedge fund directors saying the foreign banks were buying the mortgages that were package fraudualantly by Wall Street to get rid of US Trade credits...we buy a substantial larger amounts of goods from China, Japan, India,than they buy from us, this creats trade deficits/credit. Wall Street figured out that they could sell mortgage pools to the foreign banks and that would held reduce the trades credits. Wall Street manipulated the mortgages and how they were rated (AA, AAA) for almost 4 years and thats what drove our housing prices so crazy...anyone that could fog a mirror could get a mortgage.

When everything started to come apart and the losses were astronomical, the foreign countries flipped out because they lost so much money...their solution was...threatened to dump US Treasury bonds that they also held into the world credit markets...that would drive up our countries borrowering costs radically and criple our country since it appears that we can't live without massive amounts of deficit spending... India got burned badly and holds $1.2 trillion in US Treasurys, China and Japan hold similar amounts. Remember when Paulson was saying that the country was on the brink of a liquidity crisis...its because the foreign banks were threatening not to buy US Treasurys and they were threatening to dump what they alread had...at that time the deficit was at $9.5 Trillion +/-...now its over $10 trillion and will go past $11 trillion by mid February when the new stimulus bill passes. Everyone is trying to figure out what happened to the bailout money...you can guess. We buy their products, they buy our financial instruments. This is the part of the story the press isn't telling. I'm in the mortgage business and have watched this unfold...it is shocking. I don't think the jails are big enough to hold all the people that were involved.