In twenty-first century financial lore, we have heard words like “black box”, “quants”, and “credit default swaps”. We’re going to need another term for what happens when Congress needs to bailout a bailout.
Zombie firm AIG has now gotten an addition to its IV; another shot of financial epinephrine into its waning lifeline. Just three months into the bailout frenzy, we are already at the second level. Reasonable arguments could be made that we’ve been there for a while now as the Fed has essentially opened the back door of the vault these past few weeks.
Now Congress is clamoring to get an auto industry bailout bill going – and fast. Has anyone ever noticed that these things are always done on an emergency basis? Anyone with two brain cells to rub together has seen the GM situation coming for a while now. Even this humble publication has mentioned GM by name on at least several occasions as a candidate for a government bailout.
I hope that everyone who read my column nearly 18 months ago entitled “Bailouts – A historical perspective” now knows where I was going with that. Once this started it’ll never stop. This isn’t the S&L crisis or Long Term Capital Management. This is the entire global financial system. A bunch of computers with pimply faced kids manning the controls that purported to know a thing or two about finance and in reality knew nothing but how to bring the system to its knees.
My forecast moving forward is that we are going to have several rounds of bailouts left, and a relative calm in the markets until such a time that the bailout bowl is empty. Once that happens and an honest survey of the financial landscape commences, we will get to reap the whirlwind of Weimar Republic hyperinflation. The good news is there are some ways to prepare for this very likely eventuality. The Centsible Investor newsletter is one of them. It provides no-nonsense approaches, analysis, and insight you won’t get anywhere else. Check it out here.
For evaluation we’ll send you May 2008′s issue when we outlined the likely top in US Markets. And we all know where it’s gone from there. There are some other good features such as the CI Model Portfolio which is in a different zip code from the DOW in terms of performance, and analysis and stats on the precious metals and energy markets plus an overview on macroeconomic themes. So far the feedback has been excellent and prices will be going up on 1/1/2009 – check it out today!
And as a bonus, anyone who subscribes before 1/1/2009 will get to keep their price for as long as they wish to stay a subscriber.
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[...] Original post by [Technorati] Tag results for stocks [...]
[...] Thankful For Anything wrote an interesting post today onHere’s a quick excerpt In twenty-first century financial lore, we have heard words like “black box”, “quants”, and “credit default swaps”. We’re going to need another term for what happens when Congress needs to bailout a bailout. Zombie firm AIG has now gotten an addition to its IV; another shot of financial epinephrine into its waning lifeline. Just three months into the bailout frenzy, we are already at the second level. Reasonable arguments could be made that we’ve been there for a while now as the Fed has essen [...]
[...] Original post by [Technorati] Tag results for stocks [...]
[...] Original post by [Technorati] Tag results for stocks [...]
[...] Original post by [Technorati] Tag results for stocks [...]