Waiving the Flag

The Democratic system works. Wall Street and the halls of Washington thought, and continue to think, that the American public is stupid. The overwhelming phone calls, emails, and letters to Congress, were vindicated today. The so-called bailout plan was voted down today in Congress. Does that mean that it can’t change tomorrow? Not on your life, never trust a politician.

However, I cheer. I was 100% against this bailout bill. I’ve watched the FDIC facilitate the largest thrift in the United States move seamlessly to JP Morgan. I’ve watched Wachovia move to Citigroup. I’ve watched the Europeans nationalize two banks, and scoff at what we were doing in our country.

There are other ways solve our current crisis without putting our money at risk. If you do the math, there is no way, no way, the American taxpayer can either make money or be made whole in the future. Gross, Buffet, Welch, are great men, but should have been in my math class. The amount of homes that were built at the peak, are still around. Many of them are empty. The purchasers for those homes are gone. No more sub-prime mortgages, no more alt-a, and no more flippers. It’s simple math. There were homes built for those kinds of individuals. They don’t exist any longer, but the homes still do. Therefore, the outcome of today’s vote was a no-brain situation for the taxpayer.

Don’t give me that garbage about not being able to meet your payroll. A good banking relationship is not going to let a small business or a large business default on their payrolls. If they do, then that’s the height of greed. They may be dumb, but they not stupid.

Today, I covered some of my short positions because you never know what can happen in Washington. I waved the flag. I think it was a great day.

Till next time,

Bill


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