JP Morgan did the right thing and it positions them to assit in the recovery of the USA economy and the markets as a stable fiscal entity. These firms need to be given an opportunity to resolve their debt through low interest loans that will provide latitude for expansion and a return of a solid base. They are best to steer the recovery, not the USA government.
As everyone is aware, the US Dollar has been in a severe decline since 2001 (click here). Over that time it has declined over 41%. The declining dollar helped to pull the economy out of the 2001 recession by lowering the prices of exports to foreign countries. But it also caused a lot of pain to consumers by being the primary cause of the rising cost of fuel. Depressed investor confidence in the Dollar is causing foreign investors to start selling dollar denominated assets, which in turn depresses investor confidence even more.
Crude Oil Has Biggest Gain Ever as Dollar Drops Against Euro (click here)
By Mark Shenk
Sept. 22 (Bloomberg) -- Crude oil climbed more than $25 a barrel, the biggest gain ever, as the dollar weakened the most against the euro since January 2001, boosting the appeal of commodities as a hedge.
The October contract, which expires today, rose almost $12 more than the contract for November delivery, as traders rushed to close positions. Oil, gold, corn and other commodities climbed as the dollar dropped on concern that a U.S. proposal to buy $700 billion of troubled assets from financial firms will deepen the budget deficit....
