You might want to spike that latte. Bilmon was one of the best bloggers from Wall Street but who had retired from blogging until recent events forced him back.
It is pretty bad when the only responsible sensible thing for a private citizen to do is to buy gold and horde oil and food and hold no dollars.
I wouldn't invest in oil stocks now - whoever is in charge of government in 2009 will need lots of money and taxing oil companies will be the politically easiest way to get it.
The FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc. and American International Group Inc. in its probe of the collapse of the subprime-mortgage market, according to a senior law-enforcement official.
The fix appears to be in for the Democrats to be responsible and approve something to bailout these crooks while half the Republicans do the same thing. Still questions and a list of responsible things needed in any plan.
Naomi Klein -Socialism for the rich:
But the bomb has yet to detonate. The bomb is the debt that has now been transferred to the taxpayers.Andrew Sullivan, and the recent trumpeting from many small elephants, is wrong, workers did not cause this crisis. The spreading racist rants in the conservative media is that this crash is caused by minorities taking loans they can't pay back. This is crap. This is just the racist stuff you here from the right everyday but will strike a chord among angry taxpayers.
"So it detonates when/if John McCain becomes president in the midst of an economic crisis, and says, 'Look! We're in trouble. We've got a disaster on our hands. We have to privatize social security. We can't afford health care. We can't afford food stamps. We need more deregulation, more privatization.'
"You know the thesis of the Shock Doctrine is that you need a disaster to rationalize pushing through these very unpopular policies.
"So, the real disaster has yet to come. The real disaster is the debt that is going to explode on the American taxpayers. And then they do economic shock therapy."
I don't have the links now for the following but watch in the coming weeks. The real damage has moved beyond sub-prime mortgages and into the unregulated trillions of dollars in the hedge funds and swap markets and the falling confidence in the US government, financial institutions, and the US dollar. Only when the dollar crashes hard will we know the extent of the damage. Perhaps it will be better to let the Dow fall to 8000 before any major intervention. That is what brought on this proposal - unless we inject a trillion dollars into Wall Street the market will crash. I think the money might be better spent on rescues or whatever the people decide after the crash when we know the real values of some of these firms and assets. It is ironic too that the bankruptcy laws designed to stick it to the less well off are hurting corporations who aren't now given enough time for orderly sales of assets but must make immediate decisions when they are most vulnerable.
Should the Democratic majority in Congress stall until they get a good bill that pushes most of the decisions on to the next president? To do otherwise allows the Republican conservatives to claim Democrats are responsible both for the depression and the bailout of the fat cat millionaires. Of course, they will claim that if Obama wins anyway. There are economic decisions that need much more time than this administration is willing to give to push through their terrible plan.
Remember- tell your representative to just say NO to Bush and Bernanke and Paulson proposals.
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