Nobody knows what happens next.
Post No Bills: This space is reserved for the latest
disaster developments. The list so far: Lehman files for bankruptcy, Merrill Lynch is sold to BofA, AIG begs Fed for cash, Fed to accept trash and tokens, Paulson and Bernanke go out for coffee, Greenspan says everything is fine. Among the missing - Wachovia and Washington Mutual.
Takes One to Know One: None of the Wall Street executives were tempted by Lehman's; they know all about creative accounting, and they don't trust Lehman's and they don't trust each other. No deal.
He Can't Say That: Walter Lukken, head of the Commodity Futures Trading Commission, says that speculators were not responsible for the run up in the price of oil and had actually reduced their trading during the first six months of 2008 while prices were racing towards $140.
Pig 'n Polk: Just what is it the taxpayers are buying with the F/F "conservatorship"? Gretchen Morgenson's got some suggestions about how to find out how bad this pig stinks.
Eye on the Prize: I keep saying that Turkey is the prize; no one listens. Yet last week Russian Foreign Minister Lavrov dashed to Ankara to chat about Turkey's suggested "Caucasus Stability and Cooperation Pact" - which is Turkey's attempt to stay neutral between the US and Russia. Turkey may be part of NATO, but its major trading partner and source of 70% of its natural gas is Russia.
Simon Says : Bush announced he would repatriate 8,000 troops from Iraq by February and more later in 2009. Someone should tell him what's going to happen in November and in January.
Batter-ed Up : First Bear Stearns was saved out of existence. Fannie and Freddie were nationalized to save the
big guys markets. Now Lehman's is going to feed the dogs. BofA gobbles up Merrill Lynch. AIG needs a $40 billion handout. Washington Mutual is in rehearsal with Wachovia. Didn't this thing come with a manual?
Not My Fault: Greenspan predicts "we will see other major financial firms fail," but doesn't see it as a problem. Well, he doesn't see it as his problem, anyway.
Qui Bono? President Bush has ordered Special Forces to invade Pakistan and kill their citizens. There is no record of Congress approving these acts of war. There is a record, however, of General Kayani, head of Pakistan's armed forces, saying: ""The sovereignty and territorial integrity of the country will be defended at all costs...." If you have the US for an ally, you don't need enemies.
Playmates: Despite repeated US acts of war, Pakistan refuses to play. Maybe the US can screw up its relations with Venezuela enough to give the Navy and Air Force some exercise.
Stick It: Scientists have revisited the studies that lead to the famous "hockey stick" depiction of global temperature. The revised graph looks like a hockey stick.
Second Helping? Having raised the world's military temperature through their proxies in Georgia, the US is now moving to up the heat a bit by beginning a commercial blockade of Iran. Escalating international tensions may help McCain more than putting
Twitch Palin on the ticket did.
Sticks and Stones: While the US is busy losing Afghanistan to the Taliban, Russia is busy conducting joint maneuvers with Kazakhstan. Russia may not like NATO sneaking up on their borders, but they've actually lost a shooting war with the Afghans.
1, 2, 30? British Airlines CEO Willie Walsh says that 30 more airlines will tank before January. See if you can take next year's vacation this year.
Walking the Check: Bush will not put Fannie and Freddie's debt on the budget. Gonna stick the new president with that one.
Porn O'Graph: Real Estate Gains.... and Losses.