We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
There's a new feeling in the Wall Street air: The big firms are now too big to fail. If the chaos that might ensue from Bear Stearns going bankrupt, and stiffing its counterparties on its billions of dollars of trades, is too much for the world to endure, the chaos that might be caused by Lehman Brothers Holdings Inc. or Goldman Sachs Group Inc. or Merrill Lynch & Co. or Morgan Stanley going bankrupt must also be too much to endure.
Let me see if I get this right, the Federal Reserve has injected 430 billion dollars into this economy since last year., and I am to believe it is all about sub-prime morgages. Read about long term capital management. Bear Sterns was the only investment bank who didn't anti up and they got cannibalized for it. Why couldn't the Fed give them the thirty billion to bail them out instead of having JP Morgan buy them out? I would love to give the fed my morgage debt in exchange for T bills earning three percent, but then I am not big enough to fail, I am just too little and I can fail and they will let me. We are in the early innings of this soon to be catastrophe.
What is that old saying: "pride goeth before the fall?"
If the government is expected to bail out the big boys if they're in trouble, then we don't have a free market economy; we don't even have a "capitalist" system.