On Jan 18, 10:16Â pm, ta
nc.rr.com> wrote:> On Jan 18, 8:03 pm, Robert Cohen
msn.com> wrote:
>
>
>
>
>>> The federal govt is reportedly preparing checks for distributing
>> "free" money: Â This supposedly will be by the Springtime.
>> Approximately $150 USD is to be given to all to create the win-win
>> snowball effect.
>
>> (Do ya know how to spell K-A-T-R-I-N-A boys and girls?)
>
>> If ya don't know what I'm referring to, it's in all the news media.
>
>> It's not what CNBC tv financial guru Jim Cramer suggests that Uncle
>> Sam needs to do.
>
>> Cramer says: The disease of lack of confidence is about fear of
>> financial institutions going bust, because their private bond insurors
>> are seemingly nearing bankruptcy--MBIA, AMBAC and others.
>
>> Individual bank deposits are insured by FDIC up to $100,000 per
>> account or the Federal Deposit Insurance Company.
>
>> In 1931 my father lost his life savings of 350 dollars in a bank that
>> failed--no FDIC protection then.
>
>> Today, Â the banks' (financial companies) private insurors are thought
>> to be nearing insolvency.
>
>> Allegedly: some of the banks' lending/borrowing business isn't sound
>> a la the sub-prime
>> loans defaultings.
>
>> Leverage is a terrif  thing when it works, though its reverse dynamic
>> sucks.
>
>> Cramer thinks roughly $250--$500 USD Â billion would bring back the
>> necessary business and consumer confidence that presently is too
>> worried & depressed to risk.
>
>> Yeah, it's difficult to explain and to understand: Â I think I do.
>
>> I also tend to agree with Cramer; but let's do both schemes.
Perhaps the foreign "Sovereign Funds" are semi-playing a semi-J.
Pierpoint Morgan role in the analogy.
No comparison can be exact: 2008 is not 1907.
Warren Buffet is probably the logical heroic figure for 2008.
Jim Cramer is actually touting Buffet to takeover the private bank
insuror function, encouraged by the federal govt.
Since Buffet's very successsful Berkshire-Hathaway, sensing
opportunity, already reportedly is getting into the ailing bank & bond
insuror business, Buffet is,
de facto if not de jure, is sort of today's J.P. Morgan, though with
an altristic image since the bulk of Buffet's billions estate
is to be donated to the Gates Foundation's good works.
Note, a few years ago, when Buffet financially advised Schwaznegger to
raise taxes, Arnold with that phony or bull-shittey survival-actor
instinct of a modern political leader, had to wave-off Warren, so as
keep-up the California debt "lies."
So, I suppose that Buffet can only do so much public good, and I'm
certainly not optimistic about anything in the Bush II reign, which I
didn't vote for twice.
