Elections

As a Californian, I am amazed that none of the changes that swept across the country affected our state. We are over $130B in debt and chose to keep the same political group in power. I did think that one of the business women would have won.

Today the Federal Reserve said they are going to print money (my words) to buy $600B in bonds over the next 7 months to support the economy's recovery. This is a stimulus package that sidesteps congress. I do not think this organization should have this kind of power without congressional approval. There is no check and balance. Bernanke should have been removed and someone else assigned.

Irrational Exuberance

As Greenspan coined, 'irrational exuberance' this is certainly happening in the banking and insurance industries this week led by AIG, FNM, FRE, and C. All of these companies are owned to some degree by the taxpayer i.e. AIG 80% (note: A draft of the Treasury document that was left out in the final version called AIG "highly speculative"). The word is that hedge funds have jumped in which tells me that this tower is being built on sand and it will only take a sprinkle to sink it. I see companies like ABK, B of A, ETFC and so on are being pulled up by the momentum.

My fire continues to burn brightly around the Federal Reserve and its continued effort to keep the information as to what banks received what emergency loans a secret. They are now preparing an appeal.