I've had several conversations this week on the 'justice' of the bailouts and stimulus...those of us that have been prudent, temperant and fiscally responsible are having our hard-earned money used to help those who weren't - now some really were swindled or scammed...but many were just foolish.  David Brooks, as he usually does, eloquently sums this up in today's editorial in the NYT.   It is a wise and blunt summation of the situation we're in and why, despite the fact we don't like what's going on, it is.  I'll be sending out in my weekly email but you can read it here...

 http://www.nytimes.com/2009/02/20/opinion/20brooks.html?ref=opinion

 

ok, so remember the princeton basketball prodigy that became a US Senator, ran for president etc. Mr. Bill Bradley (from my home state of NJ)??? Time to thank our lucky stars he didn't make it - in his editorial in yesterday's WSJ he actually proposes socializing innovation (tho of course he doesn't say that) - here's the quote:

 "- Invest in new companies. Stimulus funds should not only rebuild bridges. They also should be invested in new companies that will create the jobs of the future. Some $10 billion of the stimulus package should be used to buy 50% of the initial public offering of every company that filed an approved S-1 registration with the SEC by the time the stimulus package became law. By making it retroactive, the government would avoid picking winners and foreclose weaker companies that are only filing an IPO for the government funds. With a dollar-for-dollar government match in every IPO, the economic effect will be immediate as young companies hire more employees and invest in their business, keeping the U.S. on the cutting edge of change for another generation. Photonics, genomics, new software and alternative energy are every bit as important to America's future as roads and bridges."

Enough already!!!!

 

 and here's the article:

http://online.wsj.com/article/SB123500612240218327.html?mod=djemITP

This comes from a colleague/partner/client/friend of mine - Federal Obligations Exceed World GDP -- Does $65.5 trillion terrify anyone yet?  The link to the article is below...but the question is, does China have enough money to fund this?

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=88851

In yesterday's WSJ (ok, I'm just catching up), the head of the IMF, Dominique Strauss-Kahn, stated that the US, Western Europe and Japan are "already in depression" and that the "worst cannot be ruled out" -- ok ok, before we all panic at the sage, always altruistic advice of the IMF, let's take a look -- the IMF is seeking to double it's lending capacity from $250B to $500B.  By saying the developed world is in depression, maybe the IMF board, not to thrilled about raising some money, will chip in and double the dollars.  The IMF is going after Japan for a $100B loan for emergency use and is going to go after China and the Saudis for emergency $$ too...

and let's not forget that the IMF is debating issuing bonds - first time ever - oh! who would buy these bonds? why governments and central banks of course! so guess who is now embedded in a country's national reserves? the IMF! and these countries could sell these bonds to other countries too (probably not you or me)...and what does that mean? these bonds become more of a liquid asset like loans to the IMF...

perhaps they're not as 'non-sage' as they appear!

Politico 10Feb09 headline --   GOP House Leaders Visit Opium Center  

 http://www.politico.com/news/stories/0209/18638.html

 just another day in running America...