Gone All Gone with the Wind

I start to feel a great pity for the US Treasury and the Fed. Their bailouts of Bear Stearns, Fannie and Freddie are certainly controversial but still they have managed to withhold the fall in confidence over US financial strength. But unfortunately, it seems this confidence will not last for long.

I feel sad because despite their efforts, nothing can turnaround the tide against the US economy and financial strength. The DOW has been falling since the bailout of Fannie and Freddie was announced. Today the US jobless claims and trade deficits are further discouragements. What more can we expect from the US Treasury and the Fed?

The trouble is that failures in the financial sector have no end in sight. Lehman is bound to be the next target for urgent bailout. Hopefully international support may help. Perhaps, in an attempt to prevent the US dollar from collapsing or the US financial system from malfunctioning, countries like China and Japan will have no choice but to inject funds to rescue so as to give some reliefs to the US administration.

Sometimes, I do feel very cold when looking at a scene like this. We have traveled a long way from 911 but are we stronger? We are certainly not wealthier in the real sense and our future will be anything but certain. Perhaps, this is time for us to pray for a sign.