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Turning Japanese: The Audacity of Reality (Part 3 of 3)

You are a very straight-shooter, but I wonder whether the "shock and awe" of revealing our true state, may be a matter of National Security (TS).

On point #5, regading GM and the other North American Auto Producers... GM can survive, but it must be transformed. This is a rare opportunity for the rebirth of the entire North American Auto Manufacturers... If that group can cooperate with each other and with the US government, then GM can play a part in a new structure, which like Japan, coordinates and maximizes efficiencies, including financial accomodations. Envision the forward-leaning Tesla being mass-produced (at much lower costs), in GM factories, using the experience and resources of that automotive giant. Then, envison these electric cars being exported, worldwide. Nuf, said.

What's Wrong with TARP

I like your plan... At least all the "junk" would be gathered together into one place, isolated from the nation's primary banking system. Good banks should be nurtured, just as bad ones need to disseminate over time. Your strategy contains the key elements of the restructuring and would appear gradual enough to avoid any shock to the primary system. It would appear that "Jubilee" has come for the banks (occcurs once every 50 years)!

I am heavily invested in MI, right now... I would say that it's going to be a long wait, but with the volatility we've seen, anything is possible (just so long as the presses keep printing). Honestly, I can imagine situations where MI could go either way, but I am heavily biased towards the positive, in this case.

It looks as if our economy is going through DETOX... Recovery and new life (business activity) await. It may take a while and it may hurt, but the outcome will be something that we can be proud of in fifty years from now.

Stay Clear of Traditional Asset Classes

Although, this near-Armageddon scenario may not occur, so it may. This is the clearest and most coherant "big-picture" of the possible reaction, which I've seen (read). While I would stress that this may not occur, it appears plausible and anyone would be wise to devote a portion of their investments, to address this contingency... Many things could change to make this picture somewhat better, or, even worse. I doubt whether I will have a flat tire, over the next year or two, based on my experience, however, I devote 25% of my investment in tires to address the possibility of a failure (4 active and one spare)... I would not hesitate to devote 25% of my financial investments to a defensive strategy, addressing the issues which the author raises. Are the speciific investments that he recommends, the best? I don't know, just as I don't know what brand of tires might be best, but I sure believe in carrying a spare, even though I haven't had a flat in many years.

Excellent analysis of the elements of risk, contained within our national economy! Not a very pretty picture, but "good job" on revealing the underlying pathology, of our economically-challenge... patient, indeed! I'm not sure about the treatment options, but the prognosis is sobering and ought to affect the patients lifestyle, so long as the patient still desires to live.

Rogue Traders and Economic Capital

I've heard that mortgage salesmen receive a front-end commission, when they approve/close a deal... Often, this same person then leaves the company, cash in hand. Wouldn't it be better if he received a flat salary, plus an annual bonus, equal to the pro-rated portion of his gross commissions, for the loans which he made, that are continuing in good order?

Selling Over? I'm Just Not Buying It.

My decision to go long, in healthcare and global IT outsourcing, was made prior to the 3/4 point rate cut. I have no idea, whether interest rates will help or hurt my investments, so I am ignoring them. My research is not based on what the Fed says, or does, nor do I participate in the mortgage/financial sectors. I ignore the headlines, but I do read the stories, keeping in mind what my original conviction, was based on... Months of research, on the industries and very specific companies, which are getting their acts together, within those industries. This is not the "end-of-the-world." I read the Bible, to prepare myself for that eventuality... I read lots of things in order to enrich myself, in the mean time... Why would an event, which renders money as meaningless, affect my investments? Preparing for Judgement Day, most certainly affects how I behave and renders me to become an honest and more caring individual, but I don't get buy or sell signals, directly from scripture. The sky is still blue and I'm long, right now, because this is not a global recession!