Wake Up Or Die In Your Sleep

You may have read with disgust any or all of the following items, as well as others like them:

1. From the WSJ: “The U.S. government unveiled a plan to scrap its $123 billion bailout of American International Group and replace it with a new package worth around $150 billion.”

2. Michael Alix, the chief risk officer of Bear Stearns from 2006-2008 and their global head of credit risk management from 1996-2006, has been named a senior vice president in the Bank Supervision Group of the Federal Reserve Bank of New York. This the the same Bear Stearns whose abuse of risk caused its demise as a free standing entity.

3. Hank Paulson, the fox who, as head of Goldman Sachs, petitioned for the increased leverage that turns out to have decimated the global economy, is now in the hen house attempting to restore order.

This is what happens when John and Jane Q. Public abdicate responsibility for the actions of their government, preferring to play ostrich rather than pay attention. We are the the cats who were away and let the rodents play. And this is just the economic realm. Don’t get me started on foreign policy.

I can’t stress enough the need for what these days passes for an extreme level of vigilance, but is in fact nothing more than minding our collective store, which is currently teetering on the edge of a national Chaper 11.


If the Fed and the Treasury are going to supercede the free market, and everything big is too big to fail, then short America, ignore the day to day gyrations, and pick up your profits in 7 years or so. Congress and Bush are utterly impotent failures. Bernanke and Paulson, representing both theoretical and hands on experience, are doing yeoman’s jobs buying time while temporarily selling out the U.S. citizen/taxpayer. They’re hoping that John and Jane Q. Public don’t notice their added burdens, while Ben and Hank bail water in the hope that the ship of state doesn’t capsize and sink before help arrives.

Oh, and they have no idea what form that help will take, or when or even if it’s coming.