Lehman, Merrill and onward

Monday morning and the Street has hit us with a double whammy.<div><br /></div><div>Lehman goes chapter and B of A swallows up Merrill.</div><div><br /></div><div>Now what?</div><div><br /></div><div>Consolidation, under normal economic conditions, would have a problem merging two gigantic organizations but now there are desperations.</div><div><br /></div><div>The free market economy seems to be having issues, but it needs a smart (not bloated) government to help smooth the way to make sure the nosedive does not continue.</div><div><br /></div><div>As I have said in previous posts, it is now more than ever that we dissolve Fannie and Freddie. Sell paper direct just like GNMA and make sure the money is there to do it.</div><div><br /></div><div>Since the major buyers of our paper, China is having issues too, we may need to increase money supply to create jobs that rebuild America and clean the atmosphere in order for people to have the confidence to buy homes at low rates.</div><div><br /></div><div>We need a Manhattan style project to rescue this economy that I see only going down farther.</div><div><br /></div><div>Here’s another example.  Now that energy prices have seen crude get under $100, no one is lowering prices.  They see profit opportunity.  They don’t understand that we need on  a global basis to keep prices down, jobs available and proper international government intervention.</div><div><br /></div><div>Your comments are welcome.</div>

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