Re: DEAL OR NO DEAL -- A CRUNCH IN LONDON

I am willing to make a substantial wager that McCain will be our next President. Like the best of politicians, he is smarter than he looks. Jimmy Carter a country hick, Ronald Reagan a pretty boy actor, Bill Clinton another country hick, George Bush unable to pronounce nuclear are just a few examples of men that made it to the Presidency. They either had great handlers or they themselves were quite brilliant, you choose.


McCain is on the side of the great majority of Americans on this one. The great majority are upset with democrats and republicans who advocate spending $700 Billion on a Wall Street Bailout. Many of those who are upset are swing state, Ronald Reagan democrats.


McCain has a realistic chance to win in formerly democratic states such as Michigan, Wisconsin and Pennsylvania, to name three. Harry Reid probably did McCain and congressional office seekers a great favor today. His attack on republicans as the cause of this problem was way over the top. It was primarily democrats that supported Fannie Mae's efforts to lend to one and all for all of those years. It was McCain who sponsored reform legislation 3 years ago.


I have no bet to offer but I believe the democratic pickup in the Senate will be less than 3. This is the bill that could change the pickup in the house. Again, the republican congress is on the side of the great majority of Americans on this bill.


The distressed assets will change hands. It is not clear that they need to be owned by the taxpayers before they are sold to strong private owners.

On Fri, Sep 26, 2008 at 12:22 PM, bob wrote:

Politicians just can never help themselves. John McCain included. And so, the buyout of "distressed" assets does not get done as Hank Paulson suggests. Too bad. Senator McCain's latest plan, this alternative insurance scheme, well he HAS said in the past that he does not know much about economic.... That's obvious. Any third grade dropout could see it's not a sensible solution.


So,...



1. Senator McCain is on the verge of guaranteeing a Democratic victory in the Presidential elections and HUGE increases in House and Senate seats for the Democrats. A sweeping, stunning increase.
2. America will now enter a depression matching the breadth and depth of '29.

Where to invest? Unknown until we can determine if the new Congress attempts to solve the problem by inflating it away or if we simply put it in some sort of doomsday bond issue and hunker down in a safe place.

This problem is worse than it looks.