Global Funding Crisis

I read an article on the Telegraph.co.uk that was titled: "US faces global funding crisis, warns Merrill Lynch". I personally found this article disturbing in that we, the US, have placed our financial stability in the hands of countries that in my opinion are not considered good allies and would like nothing more than to see us destroyed.

Here is a short quote from the article:

The US Treasury is running out of time before foreign patience snaps,
writes Ambrose Evans-Pritchard.

Merrill Lynch has warned that the United States could face a foreign
"financing crisis" within months as the full consequences of the Fannie Mae and
Freddie Mac mortgage debacle spread through the world.

The country depends on Asian, Russian and Middle Eastern investors to fund
much of its $700bn (£350bn) current account deficit, leaving it far more
vulnerable to a collapse of confidence than Japan in the early 1990s after the
Nikkei bubble burst. Britain and other Anglo-Saxon deficit states could face a
similar retreat by foreign investors.

This was a very interesting article that every one should read. The comments were even more enlightening.


Always,
Connie