It goes without saying that the financial system is in turmoil, needs help, and desperately needs some type of rescue/bailout/or whatever you want to call it from the governement and they need it soon. On this front, it really angers me that something hasn't gotten done yet. It seems to me that Congress is postering in an election season and trying to do whats "best" for their constituents. Having said this maybe its not their fault and they are in fact listening to their voter base and its the general public that is the problem. They just dont understand the plan for one, the way we got to this point second, and how it will affect them if some sort of plan doesnt get passed. The general American public hears the figure 700 billion and think that they are going to have to pay ALL of that and dont realize that this could be a "good" investment for them. Even if it turns out to cost the Amerian taxpayer a certain amount of money(which that certainly isnt clear) isnt that better than if the country slips into a deep recession or even a depression if nothing gets passed? Lost jobs, depressed prices in the stock market leading to loss of retirement savings, etc....I thought Bush laid this out pretty well and in plain language in his address the other night. Is the American public just not smart enough or maybe not perceptive enough to see this, or am I just wrong?
Another thing that has been bothering me lately is that everyone is putting this crisis squarely on Wall Street. While they deserve much of the blame doesnt the individual homebuyer have something to do with this as well? I know that banks in some cases probably targeted uninformed potential homebuyers into some crazy loan structures but the buyer ultimately signed the papers and committed to paying a mortgage. There has to be some blame placed on "Main Street" as CNBC so lovingly likes to call them.
Ok so all of that is repetitive, just trying to get some ideas on paper...
A few questions for us to ponder? Is JP Morgan taking over the US? They are getting some incredible deals out of this crisis as far as I can tell. Am I missing something but are they getting WAMU's deposits and assets for 1.9 billion (going to the FDIC)? Also do you think there is going to be an exhange created for the CDS market? It seems that the lack of disclosure certianly hurt and led us partly to where we are now(as you know probably better than I). And I know you are disappointed about RIMM and not hanging on to your short position, but is it time to buy a name like this(for a longer time horizon of course)? Maybe i'll do some research on this as my next investment idea...ok thats it for me now. Let me know if I'm off base with anything here.