The Big Picture | Modern Finance. — in case, like me, you need reminding on what these things are
House Rejects Bailout Package, 228-205; Stocks Plunge – NYTimes.com — wow. going to get uglier. i think main street wants to see people going to jail, i don’t think constituents are going to turn around and support this until some of the folks who got incredibly wealthy are brought down.
The Big Picture | A Memo Found in the Street. Icahn is harsh too and advocates clawbacks. Gross willing to manage the assets for free so hopefully we don’t pay anyone a lot for this work. The longer this thing runs out, the less sympathetic I am to the bailout. And it appears Congress is not a pushover either so I guess that is good.
“Buffett once told me there are three ‘I’s in every cycle. The ‘innovator,’ that’s the first ‘I.’ After the innovator comes the ‘imitator.’ And after the imitator in the cycle comes the idiot.”
I don’t think anyone in the family is confused about this but just in case — The Congressional Budget Office estimates that there is only a 7% probability that someone born in 2000 will receive their Social Security benefits as promised today.
Technology Review: Does the U.S. Need a CTO?. Interesting proposition. What is the reason not to have one? You can debate how active the CTO should be and how much the CTO should leave to market mechanisms, but wouldn’t it be reasonable to at least have someone leading the discussion of strategy?
Great list up at The Big Picture | Bob Farrell’s 10 Rules for Investing — these three really resonate with me:
3. There are no new eras — excesses are never permanent
5. The public buys the most at the top and the least at the bottom
9. When all the experts and forecasts agree — something else is going to happen