quote*Wal-Mart firmly believes in local procurement. We recognize that by purchasing quality products, we can generate more job opportunities, support local manufacturing and boost economic development. Over 95% of the merchandise in our stores in China is sourced locally. We have established partnerships with nearly 20,000 suppliers in China. *end quote!

Now! if there be 182 country’s making items for the world to buy and they have only 5% of the pie in China…duh! This company makes the nice people of China support their currency(yuan) by keeping it in their country working for the people there…. but with the “yuan” going up in value and the US dollar going down…all the foreign items that the American consumer buys thinking it is cheap has went up in price.

People…its all about the currency and to keep a currency strong you got to keep it floating around the country you live in so it can work for you. For the past 12 years all them US dollars are being shipped overseas to a foreign bank and with the American worker not making anything for the foreigner to buy the “we the people” have to turn to the “second” largest employer in America(Uncle Sam) to sell “we the people” debt in order to get all them dollars back!

50 years ago a foreigner would had given their left nut for a US dollar or a Hershey’s chocolate bar and today the same foreigner has got Uncle Sam and the American consumer by both all the while Hershey is moving the chocolate factory to Mexico. Wake up! America and think “MADE IN AMERICA.”

Appreciate the CDO and CDS discussion.

Yes, I have a general understanding of why the CDOs were written. Twofish explains the problem (if a problem occurs).

My question is whether the Fed and U.S. Government should be involved in operations (facilities) that, for all practical purposes, shores up the CDS payouts. The apparent implication is that the Fed decided that the CDS positions of the borrowers (big investment houses) had to be covered in order to free up credit flows. Was that the right course of action?

There are a number of ways to view the problem.

ndk writes
“Chindia’s debt-to-GDP is vastly lower, around 60%, and they have plenty of room to maneuver. Here’s deeply hoping that Chindia gets religion, and soon.”
This is utterly false. Chindia debt to GDP is over 200%, the figures you give are national debt to GDP. Sth completely different.
Goverments of Chindia may want to add debts but private agents over there, just like any where on this planet are curbing on their demand for credit.
Deleveradging of private agents globally is key to the process going on.
I ve been explaining this for 4 years now.

exactly the point..unless the different owners and sellers of CDS n CDOs n all the other synthetic/financial alchemies can come together and agree, to write off, we will be stuck with such “paper” losses which drives companies and banks to bankruptcy.

but problem is, we are in a war of man against every man, such altruistic “commonsensical” consensus is highly unlikely..

once funding for corporates are decided upon CDS+X00BP…u noe its dead..its all wrong now..we are facing a collapse of cards..