The Credit Crunch

[Coffeehouse]

The Credit Crunch
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http://money.cnn.com/2008/09/16/news.../AIG/index.htm

I did not expect that! But again, that's the kind of Russian Roulette outcome that happens when the markets are left to themselves. Now AIG, who only a few days ago seemed unlikely to suffer a faith such as the Lehman Brothers, are toast.
It's probable now that the company will end up being taken apart after the U.S. Gov't has sorted out its financial standing. It will get a 79.9% stake int the company, effectively nationalization. That's one of the largest insurance company in the world we're talking about.

Here's a political thought:
Who's the 'maverick' that stands for 'change' in Washington (after spending a quarter of a century there), John McCain! He is one of the most pro-market Senators in Congress, heavily in favour of the market getting it on at its own crazy, headless pace. Thought it a good thing that the Bush Adm. lowered the interest rate to a ridiculous low a few years back, which has led to a flow of 'bad' loans, i.e. subprime mortgages. Has done nothing to impose legislation that would buffer the wild, irresponsible 'bad' loans to everyday people that the mortage giants have been having a fieldday with the past few years. Handing out loans to people who so definitely not should receive more loans (and at skyrocket interest rates)
And now he states that the economy's 'fundamentals are strong' when that's miles from the truth. It's shaky at best.
A vote for McCain then, dear Americans, is a vote for a guy who simply doesn't understand the crises. It's a vote for a person who sees gov't intervention as a no-no. It's a vote for a man that has actively worked against the kind of activity, the red, hot latest news: the bail-out of AIG by the Federal Reserve. And if the FR didn't do this now who knows what the monkeys in Wall Street and other financial hubs around the world would do.

The U.S. needs some serious, serious legislation introduced to teach a lesson once and for all so that the Circus in Wall Street starts wearing safety belts.