The best investment the U.S. didn't make

from CNN.com

That's one subject i wanted to touch last week-end but forgot about it , yet i beleive the toxic assets remain the main problem of the world economy along with the housing market . But we can't realy separate one from the other it's one and the same problem somehow .

The program to buy back back those assets is slowly fading away or crumbling down as you like and it's a good indication of the depth and magnitude of the problem .

Nobody knows for sure how much of those assets are lingering most banks balance sheet and nobody knows for sure the extent of the housing market problems since it's ongoing and dependent on job security , GDP growth and mortgages coming due for refinancing . Right now it's under the carpet but sooner or later we're due to trip down on it .

Back at the G20 summit in april ( it seems so long ago ) i seem to remember Germany among others insisting on the US to fix the toxic assets problem , since then not a word or at least very few as to not awake the beast .

Most banks have been flooded with cash lifting their confidence and improving lending but what will happen when the FED starts raining in the money in order to try to control inflation ? Treasury might not look that attractive then and banks balance sheet might start looking more like they did back in september .

The toxic assets problem remain alive and kicking , it just happens to be stock in the closet for the time being , it will cause havoc when it breaks loose .

Tec