Monday, October 6, 2008

No Trust Amongst Thieves

The big money boys quit trusting each other the week of September 15th. They required ridiculous sums to "insure" the risk of credit default. Hank Paulson came to the rescue with a plan to buy the bad investments gunking up the credit system.

What changed since the Congress passed and Bush signed the $700 billion bailout bill? Nothing yet. The S&P is back to 1999 levels. A decade of financial progress disappeared. Pundits on CNBC say credit is frozen worldwide and the confidence problem remains. Plenty of money sits on the sidelines.

The big money boys still don't trust each other. Will it mean another round of extrinsic motivation? The last round was blatant Corporafornication. Fidelity and trust have evaporated.