Monday, September 8, 2008

Hooray. I Guess...

Getting ready this morning I had Squawk Box on in the background. The DJIA futures were up around 250 on the news that the federales had seized Fannie Mae and Freddie Mac. Joe and Carl were about to wet themselves with glee at the news, talking about how great it was to have a Treasury Secretary that understood complex financials and how great it was he could move in and do such a great thing as putting the U.S. taxpayer on the hook for private financial losses.

Here is their talk with Warren Buffett, as they all did their best to smear lipstick on this pig (sorry, no embedded video, CNBC is not friendly in that way).

My favorite part - the discussion about how Buffett used to be a huge investor in Freddie Mac and Becky Quick asked if he would be tempted to get back in. He laughed and then went on to describe the two mortgage giants in terms of whores. Nice. But it is a great idea for the Feds to use your money and mine to bail them out. Just not the money he is entrusted with.

More socialization of financial losses and continuing privatization of profits.

These economic "experts" spent the last twenty-five years preaching to us common folks how the free market was the only way to go, they presided over the destruction of the industrial regions of the U.S. and making bad jokes at the expense of the "Rust Belt." No hundreds of billions of dollars in bailout money for them. But when it comes to some dipshits who might lose their home in the Hamptons because of this squeeze, the federales jump right up to step and fetch for them.


Paulson has shot his load

In honor of this move, I give you Falco, singing about what I assume will be Paulson's new title here in the coming years if we continue to move from being a United States of America to a Union of American Socialist States

Well, he's fired off his bazooka, now we get to see the result.

Personally, I am strong believer in the free market. It can be harsh and rough, but it is the only truly just system available - and it should apply to EVERYONE. This sort of politicized finance (to use Bob Prechter's term) is croney capitalism at its worst. If the system is rotten, let it fail. Pretending we can make it all go away with guvmint money is delusion of the highest sort. They'll get a short-term pop out of this, but it still won't heal the stucco-and-vinyl-siding-investment-vehicle market.

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