Random thoughts on the Global Economic Crisis (TM):
1. Somewhere in a cave in Waziristan, a bearded millionaire terrorist is smirking. After all, bin Laden had written to his buddy Mullah Omar in October 2001:
"...Thus our plan in the face of this campaign should focus on the following:
—Serving a blow to the American economy, which will lead to:
a) Further weakening of the American economy
b) Shaking the confidence in the American economy. This will lead investors to refrain from investing in America or participating in American companies, thus accelerating the fall of the American economy …"
Who knows, he may have even shorted Lehman and Bear Stearns all the way down.
2. Intrade betting site has the odds of Congress passing a bill to fix the current crisis at 0.77. We all know a bill will get passed this weekend by our spineless representatives on Capitol Hill. The best trade out there is taking the Intrade for passage for a quick 23% return.
3. Aren't we all glad that Grandma and Grandpa didn't put their Social Security into Fannie, Freddie and AIG stock like President Bush wanted in 2004?
4. So much for President Bush being conservative and keeping government small. The Bailout 2008 will push the federal deficit to record levels and expand governmental agencies to record size. Who voted for this guy? Seriously, who? If you voted for him because he is "conservative", then you fail basic economics (and need to return to civics class to re-learn the Constitution as well.)
5. Be advised as the drama unfolds this week, as the president urgently calls for a "robust package" to bailout Wall Street, and Secretary Paulson urges immediate passage of a "clean bill" that gives him comically unchecked power, that these guys have been mulling this thing for "months." Months. That seems like enough time to have convened a bipartisan group of Congress critters and other assorted principals to the White House for a pow-wow before now.
Methinks we're being played.
6. Nobody says it better than The Cunning Realist: