Bail Outs

The government has been bailing out businesses for decades. Do you remember the bailout of Chrysler? The bailout that created AmTrak? Nixon bailed out some jet maker in the 70s. There were the savings and loads back under George Bush the elder.

Many talking heads recently have, with the clear 20/20 vision of hindsight, declared that Fannie Mae and Freddie Mac were doomed from the beginning. They say the mix of government guarantees and private stock ownership was doomed.

Now we are all watching large banking interests. There are a few who hold large amounts of bad "paper." They have made bad loans and may never recover from the write offs.

I suspect the market will take another hold and wait and see attitude. Lehman Brothers may be going under. I will hold on and wait myself.

'til later