The Great Lesson of the Bailout

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I wanted to make this a longer posting, but... you know. Anyway, we've see AIG's first quarterly profit since 2007 and Goldman Sachs' -- who was largely the recipient of the credit default swaps we covered -- something like best quarter ever, as well as the biggest and most sustained sucker's rally in the history of the markets. Cash for Clunkers has teased a lot of money into Ford's pockets.

So, I just wanted to capture and crystallize what we've learned, which I think is this:

If you give money to corporations, they will then have that money.

Anyway, CfC is no doubt creating a lot more uncoverable debt; I kind of wonder who's financing it.

My father was always intrigued by the Hebraic tradition of the Jubilee Year, where all debts were forgiven. I kind of wonder if the government will pass a law making it illegal to collect on debts incurred before the enactment date.

I kind of wonder if we'll go to war over it.