The Economy Guy

Stocks continued their downward slide, but like most down days, they recover at the end of the day. (Have you ever asked yourself WHY?)

All other markets went sideways too.

In the news today……

Geithner called to resign – over the auditor report of his handling of the AIG affair while he was Fed Chairman of the NY Fed.  Remember that it has been leaked that the “Fed” wasn’t tough enough on AIG which resulted in Goldman Sachs getting billions – whereas a tougher negotiator would have reduced the amount Goldman would have received.  Why would he resign?  He didn’t leave when it was revealed he didn’t pay all his income taxes.

Geithner (trickster) – is going to sell all the “warrants” that it received as part of TARP money lent to banks.  Those warrants will be sold on the open market.  But, what happened to Goldman Sachs is a “special case.”  For Goldman, Geithner agreed to sell the warrants to Goldman directly for $1.1B, and not sell them on the open market for the then market value of $1.24B.  The taxpayer got screwed out of $114M by Geithner, and Goldman besides saving the money, didn’t dilute its shares as the sale of a warrant does.  Just another scumbag at work – you can tell them by their actions.

Tonight’s Dinner Conversation…..

You know the housing market just about brought down the entire world’s financial systems.  And, here is a chart showing the commercial real estate market going away.  Banks have these bad loans, and those banks are in deep trouble.  What do you think this will do to our entire economy? And Why?  A composition question.

The title on this chart “Pray and Delay” is the tactics that our government is currently using in our economic meltdown.  They are hoping, like Big Bird with his head in the sand, that the problem will just go away if it waits long enough.  Good luck.  Perhaps it might be good to prepare – just in case – this gets much worse in the future.

Here are the last numbers for today:
Dow Jones 30 Industrial – 10,318 (down 14 points)
10 Year Treasury Bond – 3.36% (up 0.01%)
Euro – $1.4862
Gold – $1146 (up $5)
Oil – $76.72 (down $0.74)
Gasoline – $1.98  (up $0.01)