fed bailout

Here is a short article by Jeffrey Miron, an Econ prof at Harvard. Whether you agree with him or not, this is probably the best presentation of the anti bailout position that I've read.

http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mps...

CLICK HERE TO READ PART 1 OF THIS ARTICLE

Okay, so the feds threw us all a curve ball yesterday. I'm going to stick by my prediction that the measure will still pass by the end of the week, though I have more doubts now. I found it interesting that there were an almost equal number of Democrats and Republicans voting against the plan. For the nay votes on the Republican side, the plan was too socialist. For the nay votes on the Dem side, the plan wasn't socialist enough. And I imagine there were a few scattered nay votes thrown in just to piss off that idiot Pelosi after she decided to run her mouth.

Congressional drama notwithstanding, let's get back to the topic at hand. Namely, how to not only survive but to thrive in this chaotic market environment.

The bailout failed to pass the house. It was voted down 205-228. Here is the link:

http://www.msnbc.msn.com/id/26884523/

We will all remember today as the beginning of the new market. Congress has apparently come to terms on a bailout plan and, barring any last minute shenanigans in the House or Senate, it will be voted on and passed this week. We all have a new managing partner in D.C., whether we like it or not.

It is times like these that require perspective, and I assure you that the cooler heads will not only prevail, they will profit. I've been around awhile, and I managed to make enough money during the last major crisis to step back and casually observe the current mayhem. The lesson I took away from the Long Term Capital Management debacle and the Asian Flu (and, for that matter, the bear market following Black Monday ten years before that) is that the market is the market, and always will be.

Lehman Bros, and the bloodbath therein, is so forty-five minutes ago. Let's talk about something that Johnny Lunchbucket at the corner bar is losing sleep over - the fact that his Christmas Club account might be going tits-up as Washington Mutual heads for the dirt nap.

Will the Fed step in to save a consumer giant? Or are they only interested in wrapping the security blanket around Wall Street skulduggery?