I think this is a significant mistake: the Federal Reserve is handing a present to AIG's shareholders and bondholders that they do not deserve.Is what we officially call, "Like Duh".
I say full nationalization, and then privatization of the insurance company parts of it. It is not clear to me that any private firm has any business offering insurance against systematic mortgage financial risk anyway.
[ cf AIG... ]
But it just gets worse with:
Larry Kudlow writes:Remind me again....Kudlow's Money Politic$ on National Review Online: Mustard Seeds [Larry Kudlow]: Many Wall Street analysts are forecasting a steep 3 to 4 percent Q4 contraction. But they are not factoring in the roughly $200 billion dollar drop in consumer energy expenses that is accruing from the collapse in oil and gasoline prices. This huge energy tax cut effect will be a big booster for consumers and businesses. Not only will it benefit consumer purchasing power, it will also improve the profits picture, and as a result, the stock market...But the stock market is a forward-looking animal. Unless you think investors are really stupid, the effect of falling oil prices on profits and future dividends has already been incorporated into stock prices--it has just been overwhelmed by the bad news about the financial crisis.
At some point predictions that the stock market is about to rise are going to be true. But if they are true now, it is not because "Wall Street analysts are forecasting a steep 3 to 4 percent Q4 contraction. But they are not factoring in the roughly $200 billion dollar drop in consumer energy expenses that is accruing..."
[ cf Why Oh Why Can't We Have a Better Press Corps? (National Review Edition) ]
NO SERIOUSLY!!! REMIND ME AGAIN!!!
How do they let
on the National Review pointing out to everyone how little they understand about the modern world, reasoning, the applications of reasoning to economics, you know, THE TECHNICAL STUFF that use to be the Home Ground for Tradtional Main Stream Republicans before the FREAK SHOW rolled into town on the back of the NeoConClownCarCrew???
Why yes, now that we understand that NRO is a Red Communist Front on the Road To SERFDOM - which as one of the evil doers noted:
Surf DOM, isn't that the Data Object Model, you know, like For Surfer Dudes????Which is one more reason not to mix Web2.0 with Radical Left Wing Political Agenda Items of those who have always advocated that they were NOT the conservatives...
WE MUST STOP THEM!!! THEY ARE EVIL!!!!