Thanks to excellent newsletters (John Mauldin), financial blogs (The Big Picture), and Tom O’Brien, I have been reading and talking about credit default swaps, the housing implosion, a general disregard of risk, and the impending financial crisis for at least 2 years. The great thing is that the information has been out there for some time and it allowed me to be ready for a 20% drop in the markets by being in cash and shorting some of the most vulnerable and over leveraged stocks. The bad thing is that, with a few exceptions, the main stream media has totally dropped the ball on alerting the public to the obvious problems as well as doing a horrible job of educating them once the crisis began last year.
For those of you who still don’t know what the hell is happening and why, go listen to a couple of interviews Terry Gross of NPR’s Fresh Air did with Michael Greenberger, a former director of the US Commodity Futures Trading Commission. The first estimates have each and every American paying $7,000 for this bailout. I think you might want to learn a little about what is going on.
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