mcdspot

The Financial Crisis, as Explained to My Fourteen-Year-Old Sister.

via Kottke

I have a new appreciation for canned mackerel. It has trumped the cigarette.

All you need to know about the current financial crisis.

What Happens to Your Mortgage if Your Bank Fails?

15 Things You Need to Know About the Panic of 2008.

A recent governmental report shows that increased offshore drilling will yield a two-tenths of 1 cent price reduction in 18 years.

UPDATE: see comments.

When I learned this morning that the fed has had to inject over $80 billion into AIG to keep it from collapsing, I was shocked. Well, sort of. I can’t really wrap my mind around a billion dollars, so I was rather surprised in the way I would be when hearing about a neutron star exploding. Wow, really?

Anyway, I was obviously relived that somebody had $80 million to pony up to help this private entity survive. Isn’t that nice? And the best part is, if AIG can’t manage to pay it back by selling off its more lucrative insurance businesses, oh well, the taxpayers will take the hit. You see, this doesn’t bother me because as much as I hate paying for AIG’s excesses, it’s better than allowing the world’s largest insurance company to fail. I am thankful that the government has the power and ability to check these disasters before they get worse. There’s been some complaining from Republicans about the government’s intrusion, but what would they have us do? Analysts say that if AIG failed it would cost the market between $100 and $200 billion.

This should serve as a prime example of the flaw in the Republican argument for reduced governmental interference in the U.S. economy. In markets that rely on consumer trust and confidence, there need to be assurances that those markets will remain stable in tough times. Like now. The fed’s ability to step in and revive failing companies provides that stability, whereas a purely “free market” approach would allow companies to fail if the fluctuations of the economy demand it.

I agree that we don’t want companies depending on governmental assistance, and that such assistance should be rare and carry stiff penalties. But federal regulation, properly applied, should provide a basis for the consumer confidence necessary for any market to thrive. It’s a good thing McCain is such a champion of regulation now. *cough cough-bullshit-cough*

No, really: BULLSHIT.

Next critical issue: exploding neutron stars.