Intuitive blogger: Mega monster bailouts - Game of badminton anyone? (Abstract blog)

Mortgage crisis looks like a sports match!

To me the financial crisis looks like a game of badminton. In this match I see banks are playing against the CDO team (Collateralized Debt Obligations).

Let us suppose the CDO team are winning 14 > 3 and the match point (15 > 3) would create a full blown financial collapse... Gasp! - you can see why government wants to bail out banks to ensure they get this next point right?

So we watch the government dramatically step in (one more time) to bail out banks, this time with700 billion dollars. This imaginary badminton match is not over but intuition tells me the score is not looking good for the banks at all.

Let's observe some of these bailouts.... (Send me feedback if there are any corrections or additions to be made as I can't even keep up any more!)

Company	Date	Government bailout amount	Blog Badminton Score
EVERYONE (mortgage-linked investments)	COMING SOON	$700,000,000,000	? > ?
Lehman Brothers	September 17, 2008	$180 billion	no point
American International Group	September 16, 2008	$85,000,000,000	no point
Fannie Mae and Freddie Mac	September 7, 2008	$200,000,000,000	no point
Mortgage bailout to help foreclosures	December 6, 2007	$5,000,000,000	no point

We are in unchartered territory! The next serve is going to cost tax payers a lot of money for the next five to 10 years. (CNN) (did you hear that Republicans?) The La Times asks if this bailout will work making uncle Sam turn into uncle CEO?

I don't understand how usually it takes months for changes to occur in government, yet this package of $700,000,000,000 is expected to be drawn up (once again) over this weekend while I write this blog. They must be busy this Sunday in Washington drafting up a plan on their notepads. I am sure they would rather be at home enjoying a day with their families. I hope the additional clerks who have to help out have overtime considered.

By the way, another $180 billion bailout happened only last weekend Sept 14th with the Lehman Brothers’ gigantic rescue. I still don't understand how this bank was allowed to divide a 2.5 billion bonus to staff bonus, despite the mess and how the boss Mr. Fuld was awarded $45 million in bonuses euivalent to $17,000 an hour. The New York Times asks: "Are you capable of taking a perfectly good 158-year-old company and turning it into dust? If so, then you may not be earning up to your full potential". http://www.nytimes.com/2008/09/18/opinion/18kristof.html?_r=1&oref=slogin).

On a different subject, I don't quite understand all the media hoo-hah this week about the biggest one day rise in shares since 1970.... Shares have dropped by a significant percentage this past 12 months, so come on! I don't mind optimism, I am optimistic for myself, but hearing news like this makes me wince.

FTSC