Undecided

Where Are the President and Congress in All This?

Actually, if one really wants to understand what the President and Congress did and did not do, I have a link below that opened my eyes to the primary villains behind the bailouts today. I'm now actually pretty incensed at what I'm hearing out of Washington with all the blaming. Clearly, many of our large banking institutions don't know how to spell due diligence, but the lack of reform at Fannie Mae and Freddie Mac were the spoon that stirred the coffee. If we had seen reform years earlier we would very likely be looking at a different situation today. The link below is to an article I found today that actually referenced an earlier article from the Washington Post back in 2005. Check it out.

www.courant.com/news/o...

The Mess on Wall Street: $4 Trillion Down the Drain

I think Greenspan is only part of the problem. I caught an article today that actually referenced back to an article from the Washington Post back in 2005. It seems to bring a heck of a lot of clarity to the GSE mess and who attempted to reform it and who would not. While the GSE isn't the only problem, their unwillingness to reform left the door open to recklessness behavior by others.

www.courant.com/news/o...

Is U.S. Debt Losing Creditworthiness?

A near-term change in 10 year rates doesn't mean much to me. While my emotional response to the trillions of extra debt we've taken on recently would have me say that we hardly deserve to be AAA. But, if not us, who? I can look around the world and not see a much better picture. Sure, the Chinese have more cash on hand than anyone else, but what else is important in deciding risk premium? Economic stability, government stability, liquidity, long-term inflation, currency risk, debt levels, budget deficit, public policy works demands, a long-term track record.