2013 Enjoying the trip down?

Wednesday, September 17, 2008

Piper and I didn't walk Monday or today because he's been chained to his desk because of what's been going on with Wall Street. I went to the post office a few minutes ago and ran into Piper heading home. We pulled into the CVS parking lot and talked.

I could tell just by looking at him that he's having a ball. His eyes were sparkling, his cheeks were pink, and his dimples were deep. Piper has a broker's license, but he rarely deals in individual stocks. He prefers to steer his clients into a mix of bonds and mutual funds, which is where he's got me. He was almost giggling because back on August 8th, he was specifically directed by one of his big institutional clients to buy a few million dollars worth of AIG stock for their portfolio. It's now worth less than a hundred thousand.

He's buying shares in mutual funds as fast as he can get them now.

I pointed out that it's going to get a lot worse before it gets better. Yeah, investments like mine are insured by private companies (what company, by the way? Tell me it's not AIG!), but as people start calling on that insurance, insurance companies will be selling off their investments to pay off those claims, and some of them won't be able to survive. It's going to domino. He laughed, and said "Yes! Guess who insured Lehman Brothers' mortgage interests? AIG! (Snork! Bounce up and down.)" He's really enjoying this.

I said I was worried about all the people out of work now. He said he was a little worried about his daughter. She had left BOA to go to work for Merrill Lynch, and at the end of last week was in the final contract negotiations. Guess who bought Merrill Lynch.

So far the disasters seem to be mainly in the financial services businesses. It will spread. It will get worse. The federal government seems to think they can contain the situation with bailouts, but where will they get the money to do that? Borrow it, meaning higher deficit, or print it, which devalues the dollar all over the world? Both bad bad bad.

Time to go to the mattresses. The lumpy mattresses.
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