My beautiful bride has abandoned me this weekend to head out of town on a short-ish road trip. So yours truly is playing Mr. mom at home watching the kids. This will hopefully give me a little more time to blog this afternoon and over the weekend.
For the moment, though, I’m very interested in what’s going on in the markets this morning… Oil is up, the Dow is down, and both Fannie Mae and Freddie Mac are being drawn & quartered on Wall Street right now. Anyone who thinks we are close to a bottom of either the housing market or the U.S. economic downturn must not be paying attention. The government will bail out Fannie & Freddie if they have to (and it looks like they just might have to), and U.S. taxpayers will be left footing the bill. Private profits but public bailouts appears to be the preferred method for helping large corporations through this mess.
Anyone who thinks that the USA doesn’t have socialist tendencies isn’t watching what’s happening in Manhattan these days. We have no problem telling individuals who got themselves into a financial mess to stop crying for help and get themselves out of the hole they dug, but the large banks that recklessly chased bad paper over the last four years or so are ‘too large to be allowed to fail.‘ If only we could all follow that policy: making extremely bad long-term decisions in pursuit of short-term profits knowing full well that the gub’mint will keep us from going under.
That’s all for now… the short boys on the Ticker Forum must be rubbing their hands with glee at all the bad news coming today. When CNBC talking head Jim Cramer tells everyone to sell everything and either wait on the sidelines or start shorting, you know the economic outlook ain’t good.