Boring, Boring, Boring!!

I bring you this article to highlight familiarity with all the Indexes in the World, as it touches almost everything. I caught the mention of 11 or 12 Indexes, and listed numerous futures and Commodities which are down. It is a wondrous exhibition of information which might distract from certain underlying themes: European and Asian markets do not think that the $700 billion Bailout will work; they expect the Dollar to depreciate; they believe that the Recession will come, and spread from the United States; that European and Asian financial stocks are even weaker than American financials; and emerging markets are already showing distress. My own Evaluation is that economic conditions are not currently that bad, liquidity will not be helped by the Bailout, and the Recession which is coming will be best served with a shortage of Cash; a Statement that I relatively oppose any federal action, especially of the magnitude desired by Treasury, Fed, and President.

The Equation would be different, if I had a belief that a Recession could be avoided. I still don’t define Bankers as willing to absorb greater Risk; they are looking to shed past Risk, not take on a further load which they know will not be covered again. American Consumers face an economy shedding Jobs, with a high Debt load, and rising Consumer Costs; they have to switch to Necessities Consumption–which will not maintain an expanding economy. The prime Cash Flow of the Entertainment industries is already beginning to suffer, and high Credit Card charges are beginning to curtail reversion to Instant Access Credit. Another Round of medical Costs increase will bring a massive increase in the number of Uninsured. The worst aspect of the Bailout sets a Precedent, and fuels Inflation. Other Groups are already in line for bailouts at escalating Costs due to Inflation. I think it would be better to allow the Bankers to endure the losses of their own Making.

I am so tired of Posting on the financials bailout, having hoped one Post would serve to emphasis my views, and then I could turn to more relevant economic issues. No one can seem to suppress the Issue, though, and on We go. Here is an article by Edmund Andrews which should be read, because it outlines both how little effect will be exhibited by the Bailout for Mortgage Holders, and how little it will help the Bankers, simply because of the magnitude of bad Risk securities that were issued. I am going to rebel soon, and start writing Poetry on this blog; friend Andy’s exhortations aside that I should never attempt such invasion of artistic effort. lgl