How long has it been since I got hysterical about

the economy? I mean everyone knows I've expected the worst, and I haven't wanted to continually complain and warn folks. But just in case anyone thinks the "resolute action" by tne Treasury/Fed this week solved our problems, I thought I'd post a little caveat.

The AIG Insurance melt down is shocking but not unexpected, and the problem is not just that they made some bad mortgage loans. The problem is their credit derivative and default swaps. I wrote about them a year ago, and I don't want to copy my earlier post so I found a good article at Storm Watch (one of my linked sites). Bill O'Brien used to say he liked Scientific American, because the articles started simply enough then got more rigorous, and you could quit whenever you wanted and still get something out of it. Why did the govt take a majority interest (ownership) of AIG, instead of just lending them the 85 billion? Could it be because they plan to tell the insurance companies and pension funds, "You cant sue Uncle Sam." when those folks seek to collect on the insurance on their investments AIG sold them?

What is troubling is that politicians are "appalled" at the magnitude of the problems they've been forced to acknowledge. "Nobody expected such a thing could happen" sounds a little like "Everyone thought the Iraqis were developing WMD's" Yes we did, and no we didn't. It's a kind of culpable deniability. And they're not going to level with us about how bad the prospects really are.

The problem is they'll bankrupt the nation trying to stave off each lesser "disaster", pretending to be oblivious of the really big disaster that's rushing towards us.



We now return you to scheduled broadcasting...

ND vs Mich

Clausen hands off to Hughes


Tate getting yards after catch



Scoring with a recovered fumble



Blocking on play action TD pass to Tate. Mean while Tate is running down the field on the right (out of photo) while the safety at the center of the screen is still looking into the ND backfield for the ball carrier.

First three photos are from Era of Ara at Cartier Field
Last one from Blue Grey Sky

Weirdness

So Lehman Brothers is going bankrupt. As was the case with Fannie Mae and Freddie Mac, it'll be interesting to see what their assets and liabilities really are and how much those assets are worth when they have to be liquidated, and who they owe how much they owe that isn't going to be paid off.

and Merrill Lynch had to find a buyer

and insurance giant AIG is under scrutiny, and looking for buyers for the pieces of its business it can sell off to raise some cash.

Just folks like us can't be sure what's happening, like why Bank of America is paying more than market value for Merrill Lynch shares. And what kind of deals the Fed and Treasury are promising Bank of America to bail out Merrill.

Anyway the market is going to be down big on Monday, (and it wouldn't be very good day to ask your bank for a loan).

I haven't been communicating well...

Not only on blogs, I haven't been calling people on the phone or visiting my Facebook page or checking my email. I've been preoccupied, mainly by work, but also probably in dealing on a subconscious level with the losses suffered by our little family. Every day I think of Kim and Ross and their lost baby and I think of Sally without Si caring for Davie. If my emotional equilibrium is so upset by these sad events, how hard must it be for those who suffered the losses more immediately?

Ross's friend brought his band to town for a performance this week-end, and the guys are staying at Kim and Ross's, Kim likes the guys but decided it might be a nice time to get away, so she stayed at Steffie and Mark's last night. Only 5 min. away. I'll swing by there on my errand run this morning

But I got to be home this afternoon for the ND game with Michigan. Louie and Julie are coming over. We'll probadly skip the cooking brats etc. and just order a pizza. Janett's been miserable this week with pain in her upper abdomen. Her doctor says it's fibroid myalgia in the tissue separating her lungs from her stomach (or something like that), so he prescribed a pain remedy I've never heard of that's supposedly good for fybroid myalgia. She's cleaning and freshening the place up a little for company but I'm not sure she'll be a affable hostess. Well, my little den is at the other side of the apartment from her bedroom and study, and she can have a little seclusion if she doesn't feel gregarious.

One little problem is my TV. It is little. like 13". The TV in the living room is a little bigger, maybe 19". I'm just not a big TV guy. I told Louie we could watch the game at his house if he wouldn't be comfortable with the little TV, but he seemed happier with the idea of coming over here. Maybe the little TV will prove a blessing. If Notre Dame disappoints, we can turn the volume down and only half watch.

OK, time for me to run out for snack shopping and to see Kimbo at Steffie's. Steffie just called and said a bag of dough-nuts would not be unwelcome. So here I go.

PS The audit of my project at work went well. Tne numbers all tied out and the papers were in order. Some documentation required by the company are still missing, but the auditor felt that the shortcomings were more plant and procurement issues than accounting problems. At least that's what he said. I'll get a written report next week.

Mommy and I like this song

This one

ND won.