Frail old man runs from African American asking for change.

sniffles5's picture

"Frail old man runs from African American asking for change."

The above line was hands down the best summation of the events of the previous 24 hours.

John McChicken has been lashing out in all directions ("The economy is strong! No! We're in a crisis!") and acting irrationally ("I'm gonna fire the head of the SEC...whaddya mean I can't fire him?").

He's managed to do the impossible: He's made George W. Bush look like a leader in comparison.

Small wonder the polls have Barack Obama steadily pulling away from John McChicken.

sniffles5's blog | login to post comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Submitted by skyspy on Thu, 09/25/2008 - 12:58pm.

If memory serves you are in the banking industry....what should our country do in this current financial crisis?

What is the safest investment, besides gold?

sniffles5's picture
Submitted by sniffles5 on Thu, 09/25/2008 - 1:25pm.

As far as safe investments go, there basically are none right now. Traditionally, in turbulent economic times, money flees to "safe havens" like money market funds. To my utter shock, I discovered that it was a single money market fund that basically caused this current financial crisis.

This crisis began when Lehman Brothers announced some absolutely horrible financial results. Other financial institutions would quickly follow with similar results, but Lehman was the first, owing to their peculiar accounting periods (non-standard for Wall Street, they report in the Aug/Sep timeframe).

At this point, the crisis was still contained in the mortgage banking sector. Lehman had no choice but to ask for a public bailout, and Secretary of the Treasury Paulson, reflecting Republican thought at the time, decided that the free market should deal with Lehman Brothers poor decisionmaking.

In retrospect, it was a very bad move for the US treasury.

Lehman Bros was forced into bankruptcy.

What happened next was that the Prime Reserve money market fund, a large $65 billion dollar fund of supposedly absolutely safe investments, had a huge problem: in attempting to squeeze every last ounce of return to their investors, they'd invested in Lehman Bros. IOUs, which became worthless overnight when Lehman tanked.

Prime Reserve had to announce that they'd "broken the buck". This is the absolute worst thing to happen to a money market the end of the day, a money market fund should ALWAYS ALWAYS ALWAYS have one share equal to one dollar.

Prime Reserve shares plunged to 97 cents and the credit market went to hell. Big banks, who were major investors in Prime Reserve, yanked their funds immediately and the Treasury department had to intervene with massive infusions of cash to prevent a wholesale system meltdown.

The suddenly tightened credit affected literally everything it has touched, and even highly profitable corporations like McDonalds (!!!) saw their lines of credit pulled. (McDonalds was drawing on their lines of credit for the first time in decades to buy high-end coffee machines for their stores for the new McLatte rollout).

So in a nutshell, there are virtually NO safe investments nowadays. I expect to see a huge spike in gold prices (the traditional "last resort" investment opportunity) soon.

By the way, the underlying cause of this mortgage meltdown? In 2004, the Treasury department allowed six firms to do away with the old "never lend money more than 12 times your asset base" and bumped these firms limits from 12:1 to a whopping 30:1. Of those six firms, one has done well, one has broken even, and four (including Lehman Bros) are now in bankruptcy.

Submitted by skyspy on Thu, 09/25/2008 - 2:30pm.

Very depressing.

What about international stocks and CDs? Last week some of the rates looked pretty good right after our devasting news in the U.S. was released.

Submitted by Arf on Thu, 09/25/2008 - 2:06pm.

I'm afraid you are right, Sniffles. It's a sad state of affairs and getting worse by the minute. What we don't know is still out there!

There is no safe haven right now. Just hold on tight...

Main Stream's picture
Submitted by Main Stream on Thu, 09/25/2008 - 12:53pm.

"Frail old man...."

There's been some speculation recently that something has impacted McCain's health, possibly a stroke or the return of cancer to the left side of his face. I noticed yesterday during his press conference, when he announced the temporary suspension of his campaign, that his left eye was drooping drastically, more so than usual. He is either extremely exhausted or something is going on with his health.

And why has McCain changed his makeup treatments and recently hired a $5,000 makeup artist? What is she trying to cover up on him?


"You can lead a Republican to the truth, but you can't make him think."

Submitted by skyspy on Thu, 09/25/2008 - 12:22pm.

Hmmmm, lets see obamas mother was white, his father was 67% Egytian Arab and 33% search lists his background as Kenyan?? Conflicting info in several books.....what is true?

Frail old man runs from white man with olive skin....that sounds more accurate.

obama does need to cling to that small percentage of black heritage....

Submitted by jokerman on Thu, 09/25/2008 - 5:19pm.


Submitted by Bonkers on Thu, 09/25/2008 - 3:33pm.

Is this color thing a critical item with you?

Cheney is a relative you know!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.