Archive for December, 2008


Federal Failout

So far we haven’t talked much shit about the federal bailout here at TheDrinkTank. A lot has been posted elsewhere, but today’s news is too much.

The Fed has chosen 4 firms to manage $500 billion. One of them is Goldman Sachs. Yep, they dug this hole and are now expected to blow more money filling it.

On top of that, they are only allowed to purchase loans insured by 3 agencies. One of them being Fannie Mae. Didn’t we already run into trouble here?

Two big strikes. The stipulation that they only purchase fixed rate mortgages is good, although it will still leave a lot of bad paper out there.


Airline Suckurity

Why ship the checked bags with the plane? Why not send them next day to wherever the passenger is going? Drop it off at the curb with an address and ship it. No screening, no worries, take advantage of an existing infrastructure. Fed Ex, UPS, and the USPS have been doing this reliably and cheaply for years. I suspect when all the redundancy is eliminated from the system, and all the extra security measures are dropped, the cost difference would be negligible. This would also cut down on theft. If the bags are sealed up, as the don’t need to be opened to be inspected, it makes it much more difficult to pilfer items from them. Perhaps an industry that isn’t on the ropes may be able to profit by assisting a vital industry that has been in trouble for years.