The Great Financial Fiasco

Well, finally back in Toronto from Washington, and sorry about the delay in writing these little slices of life. The time has been spent in endless meetings with financiers where hands were wrung, sweat wiped from brows, and everyone bemoaning, and bemoaning, and...er...bemoaning. It was really sad. I mean, it was not rocket science to see this thing coming. I had, of course, liquidated most of my holdings in mid-2007, following the advice of a good friend (and maybe somewhat more) of my great Aunt Maud, Bernard Baruch, who once said, "I made all my money by selling too early".

The prevailing zeitgeist in Washington was not to do anything, and leave the whole mess in the lap of the incoming President. However, things were a bit too hairy for that, and so massive infusions of capital were decided upon, with the U.S. Government buying into a number of financial institutions. This received my full support -- needs must -- but of course the action provoked howls of outrage from a number of the more diehard Republicans, who saw the dandruffy head of socialism arising. Maybe so, maybe not, but one thing is certain -- the American taxpayer is on the hook for a lot of cash.

Yet all was not entirely gloom and doom. The Watergate being under renovation, I was forced into The Willard, and while sipping a fine martini in the Round Robin bar encountered my old friend, the Compte de Rienville, who had made, and continues to make, a fortune in sugar beets.
Way led on to way, as these things will, and in his five room suite, the earth moved that night. To divulge any other details would be prurient, and sex in the city is not what this column is about. At least not this time.

As for the second major topic in Washington, the election, I will have more to say on this in another post. Suffice it to say that there are troublesome fiscal seas ahead, and a sturdy ship is called for. McCain looks to embark on the U.S.S. Phil Gramm, while Obama hopes to board U.S.S. Paul Krugman. McCain's choice would be a disaster (Gramm saw the Dow Jones Index surpassing 30,00 some six months ago) while Obama's looks shrewd, particularly after Krugman has just received a Nobel Prize for his work in international finance. And if you don't really know who Gramm and Krugman are, well dig, folks, dig -- I am not writing these things for an audience that says, "Oh, who cares what economists think. I don't have to -- I watch Oprah."

See you soon.