As bad as things may seem in the world of finance, I believe that the healing is now underway. Congress now has no choice but to pass the emergency legislation that will allow an injection of liquidity and the cleaning of balance sheets. While there is no easy solution, a solution is at hand. The […]

We Have Lost Our Human Center As I watched the stock market plunge this afternoon I though of the Wizard of Oz. I feel like I have been transported to some foreign country, where good and evil do battle before my eyes. Where life is magnified, and the colors of our lives are intensified beyond […]

I am beginning to think that politicians are an entirely different species than the average American. There is some genetic misprint in their DNA, something that causes them to create chaos out of order. Something beyond the natural order (or disorder). Simplified, the second law of thermodynamics is that “Entropy Increases.” Nothing takes place with […]

This is not a “Political” Crisis. It is very real, and it is at your back door. When the president of the United States goes on national television to talk about a financial crisis, we should pay attention. Rather than seeing it as just another “political” move with no more sincerity than Cruella DeVil petting […]

As Bernanke briefs Congress for a second day, it is obvious that Congress speaks a different language than the Fed Chairman. They simply do not appear to hear what he is saying, so I will translate. “The intensification of financial stress in recent weeks, which will make lenders still more cautious about extending credit to […]

The Federal Reserve Chairman must always try to stay above politics. They must be careful in what they say, so that they don’t spook the markets needlessly. A misplaced word can (literally) move markets. Although his words will sail harmlessly over most people’s heads, today’s words by Ben Bernanke were astounding. I quote: “The financial […]

While watching our local July 4th parade, I began to think about the dreamers who convinced our nation to fight for its freedom. Before the Revolution, we really didn’t have it so bad. Yeah, we had a little tax on tea. But, other than that, we were pretty much free to go our own ways. […]

For the past few months, the world’s financial system has been (literally) teetering on the brink of collapse. This weekend the Fed took a final step in bringing this crisis off the cliff. The Fed allowed the two remaining investment banks (Morgan Stanley and Goldman Sachs) to become holding companies, effectively eliminating this separation, and […]

The Fed got smart and saved AIG. At one point this company was one of the ten largest in the world, with assets over $1 trillion, worth more than $200 billion, with more than 100,000 employees. Now it is 80% owned by the U.S. government. Ouch. AIG, however, insures millions of people, and has made […]

As I watch the political ads that are pasting my television, I have noticed a very curious thing. Candidates are being blamed for voting against (or for) something that is entirely against their character. Upon closer inspection, I have found this: Every bill has a laundry list of other bills that are attached to it. […]