A (Financial) World Gone Mad

Brilliant column. Crazy world. Something will give eventually and it won't be pretty.

You know markets have gone mad when the 10-year Treasury couldn’t care less that gold is at a record.

True enough. Which one is correct, I do not know, but one of the two is wrong, maybe both.

Bailout of the Day: Citigroup

The government is tossing fresh billions at (surprise, surprise) Citigroup this morning, which by the way follows $25 billion they already tossed at it. Funny how they do insist that the car companies show how they are going to "return to profitability" to get a bailout, but if you are an investment bank who screwed up so bad that you threaten the whole economy, then don't worry, Uncle Sam will come to the rescue.

Henry Paulson: King of America

Apparently Henry Paulson (and whoever his successor is in a new administration) is about to be crowned "King of America" and by Congress at that. He will have essentially unlimited power to do whatever he wants with money supplied by Congress. His decisions will NOT be reviewable by the courts. Wow, sounds like a king to me. Nothing like a catastrophe to make Congress act quickly and without realizing the implications of their actions. Goodbye Democracy. Welcome Emperor!

The Bush administration seeks ``dictatorial power unreviewable by the third branch of government, the courts, to try to resolve the crisis,'' said Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission now at Pepper Hamilton LLP in Washington. ``We are taking a huge leap of faith.''

We are indeed. These guys can be trusted...can't they? Also notice George Bush's proclamation that he is all for the free markets and capitalism...except when he isn't. Consistent. Very consistent.