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Work until you die as your 401k and IRA disappear under this crisis. I was wrong to think a few weeks ago that this was a "faux crisis" after reading extensively on mortgages and the rise of "side bets" by the financial institutions. There is nothing "faux" about what is happening now because the crisis is global in nature now.
What is telling is that I have not read of any coordinated financial strategy with the industrialized nations, but it seems to be "everyone for themselves" to solve this breakdown in "trust" which has frozen credit markets. What has Sec. Paulson said about international cooperation? Bernanke? Bush?
Jody Shenn and Carol Sallas, Bloomberg.com, write:
European stocks fell today as the credit crisis deepened in the region and after European leaders meeting in Paris this weekend pledged to bail out their own nations' banks, while stopping short of a coordinated rescue.
Meanwhile, Sec. Paulson has named Neel Kashkari to head the Office of Financial Stability on an interim basis, until the Senate can hold a confirmation hearing that will occur probably after the elections.
Heidi N. Moore, Wall Street Journal, notes:
Kashkari (above left) is an Indian-American who has a few things in common with Paulson (above right). Both are former Goldman Sachs bankers, though Kashkari, at 35 years old, is much younger and was just a vice president-level banker in Goldman’s San Francisco technology banking effort when Paulson tapped him to join Treasury.
I could not agree more with Josh Marshall's point:
For all I know this guy's a friggin' genius. But did Hank Paulson really just put a 35 year old former Goldman Sachs VP in charge of the entire bailout program?
Way to instill confidence Sec. Paulson!
