Baby, Baby, It's a Wild World

With apologies to Cat Stevens...but it HAS been a wild world this week. I awoke at 6 AM and by the time I got to the computer the Dow Industrials had already lost 700 points, recovered to positive territory, and turned south again...it's now almost 7:30 AM and the Dow is currently down about 300. By the time you read this - who knows?

The fundamental problem - the credit crunch - shows no sign of abating and, indeed, has deteriorated markedly in Europe. However the stock market rout - as disconcerting and rapid as it has been - is not all that remarkable historically speaking. The Dow is down about 40% from it's highs, not at all unusual in a major bear market. If it goes down over 50% then I will begin to worry we may be in for something really special... I have actually been toying with the notion of putting a few bucks into the S&P 500 index - I haven't been in equities for over a year.

Yesterday, Dougie sent me a link to an article in Vanity Fair that I highly recommend. It suggests that our financial system, of late, has come to resemble that of a good ol' fashioned Banana Republic. The underlying argument is familiar to me - profits are privatized while losses are socialized. I dimly recall my Old Lefty political science professor, Chuck Fox, making the same arguments some 30 years ago - although the context then was somewhat different in the era of the first (but perhaps not the last) Chrysler bailout. Here's the link to the article: http://www.vanityfair.com/politics/features/2008/10/hitchens200810?currentPage=1

On the campaign trail, Mr. Obama looks more statesman like by the day; and his opponent more rabid and confused (erratic is the term preferred by the Obama folks). I note that the CNN electoral map now shows Obama with solid leads in Virginia, Florida, and Nevada and also ahead, albeit within the margin of error, in Ohio, Minnesota and several other battleground states. Also from Dougie, I offer the pic below from the Emerald City "bassets for Obama."

Later this morning the investigator into "Troopergate" is to release his report to the Alaska Legislature. I hope for a bombshell; but barring blatant perjury on the part of Mr. Palin or someone on the Governor's staff, I think it more likely the verdict to be simply that the Governor was indiscreet and exercised poor judgement in the comments she made relative to her former brother-in-law.

Meanwhile in Washington, Senator Steven's trial staggers on. Not the finest performance by the prosecutors; but my money is still on a conviction notwithstanding the parade of poobahs now offering testimonials to Uncle Ted's character including his love of dogs.

On the personal front, I have spent a lot of time at the folks this week winterizing things and chopping wood. And lots of time at the Club. I just started lifting after time-off during my holiday and subsequent cold and was, once again, amazed at how quickly the body loses muscle tone. I've been sore all week. But it's a good sore!

I apologize for not providing you with any old legislative history this week. I have tried several times to write some stuff up, but have not been able to get into it - the project just does not amuse me at the moment. It seems too much like work. And I have been stymied in my efforts to find any pictures online of some of my favourite legislators of old.

So, there you have it. The week in review. Have a great weekend kids!