Sep 22, 2008

No, pundit, when I look in the mirror, I do not see the problem.

I see a renter who believes in a free market and understand that what goes up must come down and has been waiting for it to do so.

I see a husband and father of two young children who wish to live in a house but not one that's worth $250K but is advertised for $700K.

We have been waiting for that house to come down. What is the value of the time we have waited patiently, living below our means?

And now that home prices are at last poised to normalize (ie align w the last decade's inflation rates) -- exactly what will the bailout cost us? In tax and in community upheaval?

No, there is a large sector of American society, keenly in touch w the market because we have had to be, poised to buy when the drunks got sober. Now, at long last, the coffee has been served. And it seems to be spiked.

The last brave soldiers of capitalism merged with democracy are -- for the first time -- confused.

Sep 17, 2008

For almost 100 years AIG has profited in part by using its negotiable(less that 2%) underwriting profits to invest in large Chinese infrastructure projects, Vietnamese ports, etc. for greater profits.

Now that the Fed is endorsing AIG's business strategy, will laws need to be written to legalize AIG's risky investments in less than stellar mortgages elsewhere in the world, REITs in Singapore, Thailand, etc.? And what of its premier third world consumer product, life insurance policies cum bank accounts?

Is the Fed betting that by bailing out AIG they will stave off some of the company's riskiest loans ... long enough to liquidate its position? (Doesn't it realize that foreign consumers are smarter than that?)

I sure do hope that our Fed, as it elbows its way into place as the nerve center of our now-government controlled, makes some wise investments to balance w its risky ones. I suggest we the taxpayers buy Mars. Now.