What the biggies say and what is meant…

Though most of these quotes are from the US, the lesson applies to other countries as well…read the full article…

Paulson Bailout of Freddie, Fannie and PIMCO Translated :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

Best Financial Markets Analysis ArticleFinancial Institutions Must Be Allowed To Fail

Paulson: “Homeowners should not anticipate a government bail-out. Banks should not expect to be bailed-out by government, despite intervention by the Federal Reserve in the near-collapse of Bear Stearns in March.”

Translation: Critical banks and GSEs must not be allowed to fail.

Paulson: “For market discipline to be effective, market participants must not expect that lending from the Fed, or any other government support, is readily available. For market discipline to effectively constrain risk, financial institutions must be allowed to fail.”

Translation: Expect the mother of all bailouts at taxpayer expense.

When, in India, the Finance Minister says that growth will be on track and the we shall meet budget deficit targets…..

It means that economy will slow down even more and that the budget deficit will worsen beyond what we believe…



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