Many happy returns of the day.
Wow. What an excellent day!
Another parasitic institution gets its comeuppance. One bank is out, meaning less competition among banks. Good news. We have too many of those dumb bankers running around Manhattan handing out 5.7% 30-year mortgages to the left and to the right, driving up prices from $100K to $500K. Of course, Wachovia will not disappear. It will keep operating as part of Citigroup. But at least there'll be less competition among banks to slash the already insanely low mortgage rates even further. What a pity that the mortgage business, this primary driver of unaffordable housing, is not outlawed altogether.
Another drop of the Dow. Great news for normal people who are hoping to buy stocks at a reasonable discount. Bad news for corporate big wigs who must be imagining that the world is coming to an end because they haven't extorted 700 billion dollars from us as efficiently as planned. They are the ones who are now clicking their sell buttons, releasing their stranglehold over the Main Street if only for a day or two. Here's our chance to get a foot in the door. Surely they must be telling each other that the economy is collapsing because they can feel it with their wallet. They can't grasp the simple idea that THEY are not the economy. After all, you can't expect a tape worm to understand that its host remains in relatively good shape despite, and not because of the worm's activitities.
A good decision by the spineless Congress - for the fist time since...Sorry, can't name the year. When did the founding fathers write this little sheet of text? No, really, a perfectly good decision, even if they threw out the hanky-panky proposal for the wrong reasons. Not to mention those emails from their constituents which are said to have swayed the vote. What? Somebody wake me up, please. Did I hear that right? You really mean that the stupidity of the American people, which we all assumed to be infinite, does in fact have a limit? Where is my Champaigne? Oh, I forgot, it's still too expensive. The housing bubble refuses to burst, so one must be careful with his finances nowdays, after all, one never knows how much the last homeowner bailout really cost him. There is cheap Cabarnet Souvignon from the Napa Valley, though.
And who is there, crouching on his knees begging for a few more cents for his banker buddies? It's Hank Paulson, the man who wanted to pick your pocket for a total amount of $2000, but fell victim to the infighting among other politicians who felt every bit as philosophic about OPM but felt compelled to simulate honesty for the whole month of October. Keep up the good work, Hankie.
Oh, what's that noise in the background? It's throngs of executives fired from their crooked banks lining up to collect their unemployment benefits. Things will cost less now that we let them go. Driving a bank into bankruptcy need not cost a whole $70 million. I could do it much cheaper.
And the best part of it all is the surprisingly good performance of the US economy. A very remarkable performance, indeed, and we have every right to admire this economy, which, as it turns out, is still able to function in the capitalist way despite all the Paulsons and Bernankes of the world. Not a single depositor lost his bank account. Our accounts in WaMu are safe under its new owner JPM. Wachovia will function as usual under Citigroup. Goldman will continue to conduct its odious but still profitable business with a cash infusion from Buffett. Even the assets of the bankrupt Bear generated some interest from Barclays. Remember Paulson telling us that the sky would fall down unless each of us contributes $2000 to his rescue fund? Looks like our Atlas was seriously overcharging for his services. At the end of the day, the sky is stile where we left it yesterday.
In the final run, maybe giving capitalism a chance to work is not such a bad idea after all.