I'm stealing this title from an email I sent to my brother. We had an interesting exchange today on what's going down. Unlike me, he doesn't need to stay in Holiday Inn Express or play an investment professional on tv, he's smart and has played an investment professional for a long time. Well enough to have retired before he was eligible for any Masters races of any sort. He keeps going back to work, but I digress.
Anyhow, I got to spend a little time getting to know a little bit more about what happened. Here is what I think now: the worst is yet to come. Here is the crux of what I wrote to him:
"On the surface, the corporate interests win again. They f-d up HUGE, didn't understand what their own calculators were telling them, didn't bother to put the eggheaded theorems to the sniff test, committed and encouraged fraud in the lending process, patched up the cracks ('we believe that this will be the full extent of write-downs') long enough to get fatty year end bonuses, and are now unloading the whole crap on the stupid populace, who might become as informed as listening to a news report that says "the markets are back up" and go back to spending the money they never had and still don't.
That's the surface of it. You'd like to think that the Fed isn't as bald-facedly into the corporate hip pockets as the above scenario would have you believe, and that they are operating in a world of better information. Which leads you to the question of "if they have good information about the true landscape of this thing and they've made this terrible a bargain on behalf of what should be their main constituency, what the hell kind of nasty situation is banging on the front door?" A scary question."
So that's what I think. That selling out America was probably the lesser evil, versus what could be imagined as pretty much a total global credit lockdown. My brother thinks that we might actually be half brothers, and that Oliver Stone is my real father, but we agree that Joe American took it in the pants yesterday.
In happier news, I did a very disciplined recovery ride today. A guy from Harley passed me going about a buck twenty down at the point and I kept rolling along. Then Blair passed me doing about a buck twenty and I rolled along. I kept them doggies rolling. I don't think I cracked 200 watts the whole time. Man was I slow. But recovered. Tomorrow I am going to have the bejeesus stretched, poked, kneaded and prodded out of me by the lovely and talented Cary Bland. I hear it's quite a workout, but I'm looking forward to it.
Sorely tempted to last minute it into the 3/4 at Strasburg but I think I will keep my powder dry.
The risotto I'm cooking is probably burnt by now.