Meanwhile, back at the most fantastic financial crisis of our time (maybe all time) it seems that the government is saving the day. Now all money market funds will be backed just like savings accounts because there was a worldwide run on money market accounts. Yesterday was the best day for the market in 6 years (all in the last hour) and today may be even better. This is a great play on the political will to survive versus the market forces to punish bad businesses and investments. Who will win……?
Whoever wins, you have to be impressed with the Treasury Secretary, Hank Paulson. He is clearly in the role the JP Morgan took in the panic of 1907. Just like Bloomberg using his business acumen to save NY, Paulson (former CEO of Goldman Sachs) has actually taken control of this situation. There might be something to this Wall Street millionaire turned public servant career path. Bob Rubin did it for Clinton, doing a great job during the financial crises of the 90s. Before you say down with all the money mongers in government take a look at our MBA president. Unfortunately his business career produced nothing but losses and bankruptcies. He took that track record and did the same thing for the country and now we look for a former investment banker to save his/our ass.
Projecting out to the upcoming election we get another clear reason to pick Obama. Who is McCain’s economic adviser exactly? Carly Fiorina? She did a great job at HP basically running the company and the stock down in to the ground before getting ousted by the board that had lost all confidence. Obama amassed a who’s-who of great minds in business led by Warren Buffet to advise on his economic plan. The one thing we can take away from history is that those who generate wealth continue to do so and those who destroy wealth continue on that path. Since the country is broke for generations farther than the eye can see the choice is crystal clear. Let’s bring in the people who actually create wealth and prosperity and not the old club that has mastered the rhetoric of market speak but created nothing
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{ 2 comments… read them below or add one }
What Paulson has done is socialize the bad debts. In other words, he has, with the blessings of most politicians, voluntarily assumed the bad debt and handed it to me and you. The acquisition of corporate structures into the hands of the government is a means of controlling capital - AKA socialism. While we are not a socialistic nation yet, at least not in the sense of some, we are clearly moving that way.
If you wish to make fun of John McCain’s advisors, perhaps we should note that two of Obama’s top supporters and financial advisers are the two men who rode Fannie Mae and Freddie Mac into the ground.
As of Friday, September 19, Hewlett-Packard had over 118 billion in market capitalization and was an analysis consensus “BUY” equity. Fiorina may not have been the best CEO but at least when she left the business was still function without government crutches.
I’m really not sure you want to go down the list of who Barack Obama is associated with in politics. I would imagine that skeletons in his closet would begin to break the door off the hinges.
Brutus Centinels last blog post..U.S. to Socialize Even More Bad Debts
Cover the crap, throw a billion or so to pay the outstanding mortgages of primiairly residences and we all start with a fresh slate, till the next melydown.
Homeowners only, no businesses.
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