Tuesday Turmoil

October 7, 2008

As the history is written,
In some far future time,
Will they stare back in wonder,
How could all be so blind?

Yes, just what exactly will the sages say when the history is written? Will Bernanke, Paulson, and Bush go down as the financial 3 musketeers or the 3 blind mice? Evil insiders determined to take care of their buddies at all cost or crusaders of capitalism that pulled us back from the brink?

At present we don’t even have the answers for today, let alone a thousand tomorrow’s from now so just what IS one to do? Market’s like the known and the stable, right now much is unknown making stability impossible. While I can’t tell you where the Dow will close on any given day, or give a date certain when all this will be behind us, I can tell you I still firmly believe in this great nation, that we will survive whatever yet may come, and that in the end we will all be better for it.

Regulation will force sanity back on wall street and the remaining financial companies will be re-introduced to “fiduciary responsibility”. The 80’s may be “the decade of greed” but they were a tea party compared to the binge drunk we’ve been on the past few years. Many knew it could not continue and tried to warn, yet their words but silent notes in a score written for the brass of a Sousa band.

While there are many unknowns out there, your best defense is to get “in the know” as much as possible. Do your research and learn about the LIBOR, credit default swaps, commercial paper, and all those other terms and devices heretofor only known to those on the inside. Don’t panic, be prudent, put that new knowledge to use and you’ll find yourself re-gaining power over your own destiny.

With that in mind, here’s your first primer. It’s a good Q & A from the International Herald Tribune on commercial paper and why it’s at play in this mess.


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