Wednesday, May 3, 2017


What a difference a day makes.  A day ago it was all quiet on the San Juan front.  Today, there isn't a seat on a plane to be had; they're all filled with lawyers heading down to sue that Puerto Rico has essentially defaulted.  Where do we go from here?   Beats me. I really haven't a clue but I have an uncomfortable feeling about this unless somebody decides that this situation requires a real SOB and I'm the guy for the job.  What this really represents is the biggest muni default in history and dare I point out that this market has been almost oblivious to what, in other markets in other geographic locations would produce total panic; try Illinois.  Yeah I know, states cannot go bankrupt.  Walter Wriston also told us countries don't go broke.  He was right, but they don't pay you back either.  May I suggest that those charged with the responsibility of keeping track of these things, keep track of this thing.  Benign neglect may be the absolute wrong way to go.

Then of course we always have The Donald.  Out of nowhere he drops the "break up the banks bomb" just when everybody else in D.C. are beginning to realize that to bring back Glass Stegall is perhaps not a good idea.  Why?  Don't have an answer for that one either except that the guy likes to mess with peoples' minds. Not to worry however.  Not going to happen.  Certainly not after Goldman Sachs dropped a bomb in setting up a real, live, functioning commercial bank.  Do I mean to imply that Goldie, with Big Gary and the Munchkin occupying the catbird seats might exert some undo influence on this administration.  I would NEVER do that...but others might. And then there is the impending replacement of the Comptroller of the Currency, an Il Duce guy with...ready for it...the Munchkin's former go to guy at the busted bank!  And to think we thought the Clintons were a bit...ah...inbred?  Funny thing is what I suspect the difference might be; these guys already have so damn much money this kind of cronyism is probably considered as being simple efficiency in producing ego fulfillment.  The may also be on the right track.  Stupid they are not.

Big debate in France tonight and again I don't know what's going on in so far as the ratings or post debate commentary, but the transcript is not for small children.  They really went after each other.  Rumor has it that Le Pen was creeping up in the polls but that may be a bit of bet hedging.

We're off to Virginia for a long weekend and back of Tuesday with hopefully a new Pad or what ever they are called these days.  Don't expect anything before Tuesday unless something really exciting Hillary discovering that more reasons for her defeat.

Have a good weekend.

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