madasiwannabe

Time Not for a Bailout, But for Nationalization

Amazing how Kimberly Peacock can so clearly articulate a position that McCain cannot. After listening to him the position I can definitively say he has is that against Obama. What was his position when he was involved in the Keating 5 scandal? How was that looking out for small business and taxpayers?

Nationalization worked great for the GSE's. A lot of shareholders lost their money, but not one nickle will go towards fixing Fannie or Freddies financial woes. It all just changed hands from longs to shorts. Net result is the taxpayers will now have to pay back the money the shorts pocketed and then figure out how to pay for the losses.

WM worked out great too. JPM got 310 Billion in assets for free. FDIC got 2 Billion for their trouble and the shareholders transferred their money to the shorts. Net result is 8 billion worth of debts will not be paid back, and JPM will sell the 30 Billion they just wrote down for 50 cents on the dollar and make 15 Billion for their trouble.

Doing nothing, means all of the US assets will change hands and we the American people will end up with nothing. Sounds like everything from here is a little too little and a little too late. Thanks Hank and Ben for your bringing your experience to DC. Without you we would have never been able to find our way over the cliff so quickly.

Tuesday, September 2: Week in Review

Analysts are trying to make sense out of a shark frenzied, irrational market. There are no patterns, only speculators trying to catch a peak or trough to make a quick buck. In this market what happened yesterday has little to do with today.

Time will prove that China made a bad move dumping out of the GSE's at the bottom. With commodities crashing and fund managers pulling out, the financials are the most attractive deal in town. Expect another Mid July financial correction to happen shortly.