Wednesday, September 17, 2008

What A Wonderful Thing That Was.

The US government has agreed to bail out insurer AIG, to the tune of 85 billion dollars. Unbelievable. This doesn't help anybody. It doesn't solve anything. It dilutes shareholder value and debases the currency. In the end, it makes the problem worse and only delays the final reckoning and meltdown of our economy.

At some point in the past, it might have been possible for the US Treasury and maybe even the Federal Reserve, to have shepherded their resources and survived this crisis. They might have been of help in lending whatever institutions that come into our markets with banking services after the meltdown, some continuity and legitimacy. They might even have salvaged some of the value of our currency. It seems unlikely now.

On the bright side, there is something to be said for delay. Everything functioned normally today and every indication is that it will also, tomorrow. Soon enough, I think we will all realize what a wonderful thing that was.

Maybe this is the beginning of some kind of 12 step economic program for the whole country. Easy Does It. One Step At A Time. Naw. It's more like the old barkeep who won't 86 all his customers who are drinking on the cuff, because if he did, there would be no customers left.

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