Latest thing making the internet rounds. Click on the picture to enlarge.
The whole bailout thing is disgusting. If Ed's Cleaners makes bad investments and takes foolish risks, Ed goes bankrupt. That serves as a lesson to everyone else to be cautious. But more importantly, Ed bears all the risks-he is the only one that his unwise decisions hurt, and the only one to reap the rewards if it works out. If you're a Wall Street banking house tired of making chump change on actual loans, and decide to start playing the ponies with higher return investments, you get government to bail you out. Or if you're an auto maker in Michigan, employing lots of union workers, and you make cars people don't want to buy at three times the cost of your competition (who makes cars that people do want to buy), you also get goverment to bail you out. Put another way, you and I get to be partners in corporate losses, but don't get any share (except taxes) of the profits.
Who was asleep at the switch to let things get to this point? Answer-everyone in government. Let's brook no Pelosi hectoring about Bush policies causing this-Congress has significant oversight responsibilities over the securities markets, and passed deregulation laws allowing the investment banks to get into all these other markets that are now bringing it down. Democrats have had control of the Congress for a majority of the last 30 years, and the Presidency for about a third of that time. Though, let's not forget who appoints the members of the SEC and the Fed, who runs the Treasury, and who appoints the Attorney General who prosecutes securities fraud. This is a bipartisan failure.
As for Bracketology, here's my picks: Congress' slow-down offense and tenacious defense will take down Obama, as platitudes seldom translate into policy and Democrats like to eat their young (signed, the Clinton Health Care Reform Bill). I see Congress taking JP Morgan chase as well; Nancy Pelosi's post up game, combined with Harry Reid's three point shooting and control over bailout funding ultimately takes down JPMorgan's heretofore high scoring offense to make it out of the East Regional. Over in the Southeast Regional, the Queen of England's strong inside game and deep bench should overcome Lloyd's disaster- and investment- depleted reserves (and lack of outside shooting), and Barclay's will lack sufficient liquidity to stop the Buckingham Express. Take the Queen and -7. On the other coast out at the West Regional, I see Bank of America winning in OT over Citigroup, with BOA using its broader market position, Federal Reserve backing for its Wachovia buyout, and its full-court pressure to make it to the Final Four. BOA +5. Goldman has no shot, as its right behind Lehman in the row of investment house dominoes. Finally, in the Southwest regional, this is the easiest side of the tournament to handicap, as the Fed will easily move past the fledgling FHFA, based on its still vast reserves and its multiple offensive weapons. In the Final Four, I have Congress taking the Queen rather easily, capitalizing on its powers to declare war and to score inside the paint. Congress +10.5. I have the Fed narrowly beating Bank of America-the Fed's superior reserves and scoring talent being depleted is the only thing keeping this one close. Fed +1.5. In the championship game, I see it as fairly close, but have Congress by 6. The Fed is in a weakened state, and even though Congress is running for re-election now, the Democrat majority is safe in both houses, and with Steny Hoyer's rebounding and Barney Frank's back court scoring (I'm far too immature to resist the Barney Frank/back court crack, and if you've read this far, so are you), the Fed will be out of this by early 4th quarter.
Uh, its late. Sorry for this entire post.
The whole bailout thing is disgusting. If Ed's Cleaners makes bad investments and takes foolish risks, Ed goes bankrupt. That serves as a lesson to everyone else to be cautious. But more importantly, Ed bears all the risks-he is the only one that his unwise decisions hurt, and the only one to reap the rewards if it works out. If you're a Wall Street banking house tired of making chump change on actual loans, and decide to start playing the ponies with higher return investments, you get government to bail you out. Or if you're an auto maker in Michigan, employing lots of union workers, and you make cars people don't want to buy at three times the cost of your competition (who makes cars that people do want to buy), you also get goverment to bail you out. Put another way, you and I get to be partners in corporate losses, but don't get any share (except taxes) of the profits.
Who was asleep at the switch to let things get to this point? Answer-everyone in government. Let's brook no Pelosi hectoring about Bush policies causing this-Congress has significant oversight responsibilities over the securities markets, and passed deregulation laws allowing the investment banks to get into all these other markets that are now bringing it down. Democrats have had control of the Congress for a majority of the last 30 years, and the Presidency for about a third of that time. Though, let's not forget who appoints the members of the SEC and the Fed, who runs the Treasury, and who appoints the Attorney General who prosecutes securities fraud. This is a bipartisan failure.
As for Bracketology, here's my picks: Congress' slow-down offense and tenacious defense will take down Obama, as platitudes seldom translate into policy and Democrats like to eat their young (signed, the Clinton Health Care Reform Bill). I see Congress taking JP Morgan chase as well; Nancy Pelosi's post up game, combined with Harry Reid's three point shooting and control over bailout funding ultimately takes down JPMorgan's heretofore high scoring offense to make it out of the East Regional. Over in the Southeast Regional, the Queen of England's strong inside game and deep bench should overcome Lloyd's disaster- and investment- depleted reserves (and lack of outside shooting), and Barclay's will lack sufficient liquidity to stop the Buckingham Express. Take the Queen and -7. On the other coast out at the West Regional, I see Bank of America winning in OT over Citigroup, with BOA using its broader market position, Federal Reserve backing for its Wachovia buyout, and its full-court pressure to make it to the Final Four. BOA +5. Goldman has no shot, as its right behind Lehman in the row of investment house dominoes. Finally, in the Southwest regional, this is the easiest side of the tournament to handicap, as the Fed will easily move past the fledgling FHFA, based on its still vast reserves and its multiple offensive weapons. In the Final Four, I have Congress taking the Queen rather easily, capitalizing on its powers to declare war and to score inside the paint. Congress +10.5. I have the Fed narrowly beating Bank of America-the Fed's superior reserves and scoring talent being depleted is the only thing keeping this one close. Fed +1.5. In the championship game, I see it as fairly close, but have Congress by 6. The Fed is in a weakened state, and even though Congress is running for re-election now, the Democrat majority is safe in both houses, and with Steny Hoyer's rebounding and Barney Frank's back court scoring (I'm far too immature to resist the Barney Frank/back court crack, and if you've read this far, so are you), the Fed will be out of this by early 4th quarter.
Uh, its late. Sorry for this entire post.
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