[Note to the new arrivals: I look in on the American economy every so often, using the DOW crossing a millennial number (in either direction) as a guide. You can find other entries by searching for "DOW Breaks", and will probably discover that I find that Wall Street does not intersect with Main Street, and that our larger markets involve more fantasy than will be found in an entire year's worth of Forgotten Realms novels.]
Well, we're back up 1000 points, so I guess the recession is over.
Actually, I expect more wild gyrations over the next year as we approach something that resembles a "new stability". I think the current short-term bull market comes entirely from an administration that declared a) we're in a hole, and b) we think this is a good time to stop digging. Its amazing what kind of effect it has on markets based on what people THINK things are worth, as opposed to what they ARE worth.
And yeah, I have an opinion on the entire AIG matter. Yes, the bonuses ("retention" bonuses, because you want to keep people on who did such a good job), are but a tiny fraction of the entire bailout, like paying $100 and quibbling about a dime. But if we are investing in such companies (and I prefer the idea of "investing", since its our money being poured in), we are going to get to quibble about such such things and make the lives of those who got us into this mess rather unpleasant. Because then they will be more interested in getting their company ship-shape and GETTING RID of our continual attention.
So if you want things to go back to normal, banks, consider this an inducement. I think the idea that we'll STOP paying attention to your bonus structure will be a great encouragement to you fixing the mess you've created post haste.
I Was Wrong (The 1930 Hobbit) - So, as I mentioned in my last post, the newly arrived splendidly illustrated catalogue for the current Bodleian Tolkien exhibit, TOLKIEN: MAKER OF MIDDLE E...
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