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Obama will nationalize US banks – living in dreamworld

Posted by Adrian on February 25, 2009

Yes the Obama administration will eventually take huge stakes in American banks, hence they will be fully nationalized at some point. Despite both Ben Bernanke and Barack Obama trying to offer a veiled illusion that insolvent US banks will remain private.

The market reacts on words (sucker rallies) from Ben Bernanke bizarre assertion that the US will come out of recession in 2009 with Barack Obama’s contradictory and delusional belief (from his recent budget speech) that he aims to cut the US deficit in half yet pour billions into the banking sector so ‘credit will start flowing to consumers’. The man has no idea. The banks will not lend and the US citizen is now in survival mode, they will now start to save.

The USD is now very over bought, especially against the YEN. Once the reality of bad news come back in, it will smash the USD back down and send indices down towards November 2008 lows.

Obama is showing hallmarks of the al-Sahaf syndrome


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