Archive for February, 2010

Here’s the latest AIG headline:
Wow… a big loss… they need more support… sounds like it’s bonus time again at AIG!  <UGH!>

Good on the Fed… raising the interest rate the Fed charges for "emergency" funds… the same rate that helped stabilize the banking industry and, thus, one of the pillars of the economy… and, thus, one of the pillars of the world. 

Now that the banking industry is stabilized, the sooner we can get back to normal, the better… and stop all this debate about silly artificial bank profits, inappropriate uses of graciously cheap money, obscenely unfair bank bonuses, etc.

Unfortunately — in the short run — everyone (i.e., the stock markets) may interpret that as a bad thing.  Everyone is predicting that this morning is going to be a disaster.

Well… it may be a disaster this morning… but this isn’t a bad thing longer term… it’s a good thing… just like lower oil prices and a stronger dollar are much better for the American consumer — and, thus, the world — too.

UPDATE:  Go figure, the market really is smarter than most people.  After International indexes tanked overnight, the Dow took a quick 100 point nosedive at the open but reversed course to actually finish the day up almost 10 points!