Friday, March 20, 2009

Guns and More Guns/Cramer Says Buy Coca Cola/By the Way AIG is Not Making Progress in Paying us BACK that 180 BIllion

I heard that the Tennessee Legislature may introduce legislation soon to allow pregnant women to carry shotguns in the maternity ward. Maybe that is a joke, but it does at least appear to be a plausible piece of legislation for them. I was curious about the reasons why it was necessary to allow motorists to carry loaded shotguns in their vehicles. I did read a story recently when a gun permit holder, in a fit of road rage, shot and killed an unarmed motorist and then pointed his weapon at a female attempting to call 911. I suppose the argument is that the other motorists armed to the teeth could have peppered the guy with pellets in a 21st Century version of the O.K. Corral, except it could happen at a local intersection. The reasoning is apparently similar to the argument in favor of carrying our firearms into state parks, remember that bear that attacked the little girl. If everyone had been packing, they could have shot that bear. NewsChannel - Nashville, Tennessee You have to be from around here to understand all of this, or maybe not. It never occurs to anyone that permitting a loaded weapon in a vehicle, a bar where libations have been liberally imbibed, or a state park may cause more deaths than it would prevent. But this legislation will pass because it is viewed as more important than any other matter in Tennessee, far more critical than a 9.1% unemployment rate in February, a burgeoning state budget deficit, health care, prisons or any issue other than trying to amend the Tennessee Constitution to prohibit abortions. In full disclosure, I do not carry my Louisville slugger autographed by Frank Robinson in my car, so I want the world to know I am not packing in my vehicle.

Cramer was making a case for buying Coca Cola in his Friday He opined, as I have, that the Fed is embarked on a debasement of the U.S. currency which will cause it to fall against other currencies which will help multinationals with substantial overseas operations.

The 3 month Treasury bill closed Friday to yield .208%, whereas the 3 month LIBOR rate closed at 1.22%. A five year treasury now yields 1.645% with the 30 year at 3.653%.

The WSJ had a helpful article on how the FED is creating money now and its power to create has no limit.

While there has been considerable outrage about the bonuses paid to the wizards who are now attempting to unwind the contracts created by AIG's Financial Products unit, no one is talking about getting back the hundreds of millions paid to the few souls in its London unit who created the mess. Moreover, AIG's counter-parties have received 100 cents on the dollar for their contracts with AIG. So one way to look at what has happened is that the government has simply used AIG as a conduit to funnel money to other financial firms. There also has been almost no progress made in 9 months to pay the government back the 180 billion that we have already sunk into AIG, and the current populist outrage may make that a more difficult problem to resolve. This is a far more important issue, to say the least.

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