This is going to be pretty short. When, between visits to the Mayflower Hotel, Bad Boy Eliot scared the AIG Board into getting rid of Hank Greenberg and installed Messr. Sullivan & Co., there was a Bad Moon Risin'. No one at the time saw it. Whoever was supposed to be watching didn't notice that the new management had "doubled down" on products, the risk of which they clearly did not understand, with the result that we see today. Mr. Bernanke rightly expressed his rage at what had occurred and revealed his feelings on 60 minutes last Sunday. But talk about doubling down!
The Chairman has just placed the biggest bet the world has ever seen. He has monetized the debt of the United States. Now I'm a long way from being the brightest guy in the world and I know that the Fed has a hell of a lot more info than I do, but there is no immediate understanding of this move that comes to mind. Forgive me but I'm going to sit and think about this one for another day before waxing poetic. But I've lived a reasonably long life and the last time I was involved in an environment like this the folks around me were speaking Spanish. More tomorrow.
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