Bailout = Burst Bubble

Well, with all the "optimism" that the bill will go through the Senate and turn the House over from the "No" region, I decidedly got more pessimistic. As a lot of economists said, it will only slow the inevitable. For me, that's bad. For Buffett, he will gamble a future he does not have, a future I am fighting for, in that the bailout will keep his billions intact at the expense of my dollars. Fantastic.

Well, to be frank, unless the politicians and the finance officials have an alternative plan to completely deleverage the financials as much as possible before next year, I sincerely could not help but fear for the worst. Adding liquidity is a good thing, but where does it go? Productive companies? What is productive? If the "great" minds of Wall Street did not figure them out over the last decade, how can I be sure they will figure it out now?

Sure, most are cash generating assets, but most of them are mortgage backed. Once they default, there is no value. Ultimately, the problem comes down to that people borrowed too much to handle. Yet, we are letting them get away with it by letting them get priority to be rescued, as written in the bill to prevent more foreclosures. If one makes a mistake, why not punish them? And we punish the good with more national debt? Wow!

Anyway, McCain lost my respect with the appointment of Palin. Obama then lost my respect with his political support for the bill. Great leaders make bold and often difficult decisions. I rather Volcker be the president. He brought a recession and USA back down to Earth. The best medicine are often bitter, yet only few understands it.

I was talking to my friend about warnings of Singapore being ready to take the hit, and he agreed that he, as an American, rather take the hit now too. Jokingly, he said he could use the time off. Naturally, I doubt it will be that bad if it happens now. He also mentioned that Singapore will be a good candidate to be a futue finance leader. Come to think of it, maybe that is why certain "deserters" are flooding back into Singapore while the others continue their attempt to pelt it down.

Frankly, I feel that one should be happy wherever he is, and clearly, I'm trying my best to work my way out of this mess. Even though this is brought by many people who are too greedy to admit their mistake, particularly the ones, who happen to be Americans in USA, or Singaporeans in Singapore, who own mortgages they can't afford and wants us to pay for them. I have friends with mortgages, but I always said, live within your means, and they believed me.