Black Sunday on Wall Street

What does it all mean? Glad you asked. For a very short explanation check out this interview. Summary – It’s bad. Really bad. 100 year storm bad.

For tongue in cheek lessons on the financial crisis check out this post. Funny, but they are spot on in their comments. If you want to be bailed out by the Fed, then apparently you have to aim not for just mediocre incompetence, but rank, over-the-top, super-incompetence.

Which brings us to AIG. The Fed will be desperate to save AIG (for the time being, one might argue they are merely staving off the inevitable) without appearing to make it a government bailout. I suspect that AIG will get their “loan” from JP Morgan and Goldman-Sachs (courtesy of the government strong-arming them). Between that and the Fed accepting equities! as collateral for loans (what a joke that is, you can now give the Fed equities for Washington Mutual for instance which is rapidly heading for zero, and the Fed will give you actual (fake) money in return. I wish I had part of that action), AIG will be “saved” for the immediate future so that the financial system will implode later on. Anything but today.

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