The American Spectator

br> Davis, California /p> p> AT LEAST IT’S NOT EUROPE br> Re: Bret Joshpe’s The U.S. Global Insurance Company : /p> p>It’s a tempting idea asking the Europeans to help out with the Wall Street mess, but the ugly secret they are too embarrassed to talk about is their problems make Wall Street’s look like mere bagatelles. Lehman Bros collapsed with a leverage ratio of 35:1, compared to a ratio in commercial banks like Wells Fargo of around 10 or 12:1. Deutschebank has a leverage ratio of 50:1 and its liabilities amount to about 80 per cent of the whole German economy. If Hank Paulson is having sleepless nights, his counterparts in Berlin are having nightmares. If any cavalry come riding to the rescue, it’s a safe bet they won’t be eating sauerkraut and sausages. None of the other Europeans is in much better shape. America is on its own, but what else is new, and the good news is you don’t need to suck up and waste time with a pack of useless allies. br> — Christopher Holland br> Canberra, Australia /p> p> “Last week, the U.S. acted boldly once again with the Federal Reserve Bank loaning $85 billion to AIG and putting the risk of default on the U.S. taxpayer.” Boldly? Not the best word for the Fed’s action. Recklessly, fecklessly, scandalously and most probably, unconstitutionally. Boldness implies an understanding and acceptance that dire consequences may occur but the risk is worthy of the possible sacrifice. Gambling with money that is not their own, the Fed saved AIG shareholders and placed all the risk at the feet of tax payers who derive no direct benefit from AIG. Please, lets save our praise for those who earn it or it becomes a howling idiot wind that drown out sensible discourse. br> —