This one is really scary

[lapfog_1]

http://www.cnn.com/2008/WORLD/asiapcf/09/17/aig.singapore/index.html

"The crowd formed just hours AFTER (my emphasis) the U.S. Federal Reserve Board authorized the Federal Reserve Bank of New York to lend $85 billion to a crumbling AIG. In return, the federal government will receive a nearly 80 percent stake in the company.

One person who lined up in Singapore, retired teacher Wong Yoke Inn, said she was going to pull her investments from AIA even though it would cost her about $3,000 -- the equivalent of about $2,000 in the United States."

So AFTER the Fed announced the bailout, account holders in Singapore are willing to lose $2K dollars (US) just to close their accounts.

[wickedweasle]

1. its sad

that those people are lining up to get the money we just loaned aig which is money we had to borrow from china in the first place when will this ever end

[lapfog_1]

2. When China finally pulls the plug

They realize that if they do, the US is toast... but they take a huge hit as well as it would wipe out their customer base. They are rapidly leveraging their manufacturing capability to serve Europe, Asia and the rest of the world so that they can start weighing the pluses and minuses of pulling the plug on floating the US debt. The worse our debt looks (and the better their markets elsewhere look) the easier it will be for them to just say "Nope, no more T-bills... and we are selling a few hundred billion of the ones we already have"

That forces the US into bankruptcy. I expect to hear that this is happening almost any day now. Each of these $60 or $85 or $100 Billion bailouts is pushing it closer to reality.