SAR #8273

Put $700 billion in the bag and no one gets hurt.

- Ken Kam

Legacy: Seems my granddaughter will owe China $2,000 to bail out Goldman Sachs & friends.

October Surprise Wedding: Demonstrating their complete contempt for the intelligence of the American voter, it seems the McCain camp is trying to arrange a mid- to late-October marriage for Sara's pregnant daughter. Headlines! Magazine covers! Talk shows! and 24/7 on FOX. easily distract most of middle America for a week or more. And a Happy Ending!

Do Not Pass Go: The US has 5% of the world's population and 25% of its prisoners.

My Way: The Secretary of the Treasury gets to determine which 'troubled assets' will be purchased, how the purchases will be conducted and at what price. The Secretary gets to determine if, when and how much equity, if any, the government may acquire in any given transaction. What parts of this satisfies the concerns of House Republicans?

Paper Moon: S&P estimates that the default rate on US corporate debt may top 23% by 2010. And S&P are congenital optimists.

The Band Played On..: Both subprime and Alt-A delinquencies increased in August. 2006 vintage sub-prime mortgages have reached a 40% delinquency rate while over 30% of the 2007 crop is already delinquent. Alt-A is marching to the same drummer.

Enough : After thirty years of failed experiments, the Masters of the Universe and their friends from the University of Chicago are finally shown to be bereft of a single workable idea. The 'free market' has run downhill all too freely. De-regulation is a curse, not a cure. There is no magic in greed. And government, more often than not, is the answer.

Rehearsal: At 178.7 million barrels, the U.S. gasoline inventory has reached its lowest level since August 1967. Back then, demand was about half of what it is today.

Hard of Understanding: Pakistani General Athar Abbas said that American helicopters "passed over our check post so our troops fired warning shots." Hearing this, Pentagon spokesman Bryan Whitman said: "The Pakistanis have to provide us with a better understanding of why this took place."

Another Option: The Bank of China is open to "investing in" (buying) Wall Street firms directly, rather than going through the US Treasury.

Mr. Roger's Neighborhood: Turns out that Goldman Sachs was the only Wall Street firm in the room when Paulson decided to rescue AIG. Also turns out that Goldman was on the hook at AIG for $20 billion. But that's what friends are for.

Details: While the coal folks are bragging about clean coal, ask them if they are figuring in the fact that about one-third of the power produced in a carbon capture and sequestration plant is used in capturing and sequestering the carbon. Drives up the cost a bit - say by a third or so.

Size Matters: While at the UN meeting last week, Paraguayan President Fernando Lugo was approached about having a meeting with Sara Palin. He turned down the opportunity.

Exodus, Redux: The US has sent troops to Israel with advanced radar and the equipment and personnel to support a coordinated defense against Iran's missiles. This is the first permanent US military assignment on Israeli soil.

Porn O'Graph: Wealth and Debt and Derivatives.