Arkady's Thoughts

So much for the new age of transparency and change and while I am not going to blame Obama for this AIG mess - it's happening on his watch and he is the big boss. It has now become rather clear that Geithner and Dodd who once claimed they knew nothing about AIG bonus payouts are coming clean. Looks like Dodd's amendment in the massive 787 billion stimulus bill contained language that opened the door for these bonuses to be paid out and since Geithner is writing the check he is responsible. Dodd's language specifically protected contracts before a certain date and it seems incredibly ironic and might I say stupid that a bill was passed today to tax the living hell out of these very same bonuses they allowed in the first place! The entire concept of taxing 90% of these bonuses is ludicrous at it's face and today they passed legislation that is allowing just that. While AIG's executives most certainly do NOT deserve bonuses and frankly should be ashamed for ta...

Between the follies of Geithner and the Obama administration one can easily overlook the buffoonery of our federal reserve chairman, a man I tried defending earlier when he injected money into the system. Yesterday Bernanke announced during the scheduled FOMC meeting a plan for market operations that entailed the purchase of US Treasurys and since he was already in the business of destroying the US Dollar decided to throw in 750B worth mortgage backed securities for a grand total of 1 trillion dollars. As you would expect bonds rallied hardcore while commodities got energized immediately as the dollar fell. Dollar fell hard and it's no wonder, because in the most simple of terms our government is debasing our currency. What the purchase of these treasury indicate is a complete and utter distrust in our economy, considering we just spent hundreds of billions dollars on paper that yields us already historic lows. More importantly what does this signify for the rest of our d...