Wednesday, October 08, 2008

Throw a TARP over it

The good news is that the DOW lost only 2% today:

Here, on the other hand, is the bad news:

Do your remember the heady days of the 14,000 DOW? Just a year ago?

Where did all the money go, Spotty?

It vanished; maybe it was Raptured. Maybe it really didn't exist in the first place: it was just a grand illusion we all had that the United States was a wealthy country.

That's not funny, Spotty.

Indeed it is not, grasshopper. Here is James Kunstler's recent musings on the subject:

Some big questions for the week: will the Euro survive as a currency? Will the rush into the US dollar continue even as the US financial system dematerializes in a Fibonacci fever of accelerating de-leveraged infinitude? Will the remaining Big Boyz, Goldman Sachs and JP Morgan succumb to the counter-party hemorrhagic fever? Will great rows of lesser banking dominoes now start clacking onto their faces? Will all fifty states follow the leads of California and Massachusetts and line up at the US Treasury's hand-out window. Will the entity that calls itself the civilized world be left at week's end with anything resembling money?

. . .

Okay, what happens here and now? To this point (9:am Monday October 6, 2008) events have been proceeding under a veneer of still-just-barely-credible authority. We (as represented by congress) have allowed Mr. Paulson to advance and activate his remedies. As things unspool further, he will be out of credibility, perhaps in a few days, and it's unlikely that his successor will have any either. Mr. Bernanke has simply gone AWOL. Notice, he has vanished from the media landscape. We may soon be hearing the declaration of various "emergency" measures involving the allocation of food and the rationing of oil products. The Big Bailout of last week may be partially rescinded as it becomes obvious that it has had no effect -- I believe about half the $700 billion has already been allocated, which is to say: lost. I realize these things sound pretty extreme. But forces have been set in motion and momentum rules. One thing for sure: the American public is about to undergo a severe mood adjustment. There will be fewer American Idol fans and worshippers of Donald Trump by the close of business on Friday.

Who said, grasshopper, "Events are in the saddle and ride mankind?"

Don't know Spotty.

Do any of the boys and girls know?

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