Bailing Out the Bailer-Outer

by Kaiser Edamame

Today the US treasury announced they are bailing out the federal reserve bank. They are concerned that the federal reserve bank – after taking over the debt of Bear Stearns, Fannie, Freddie, AIG et al. is “over-leveraged”.  The obvious question is, who will bail out the Treasury?  The answer is paper.  More specifically the “Bureau of Engraving and Printing”.  We are so long the Bureau of Engraving and Printing as we see it as the only financial institution in the country that will always “find” enough liquidity to fund itself.  If you’d like to get long them we recommend you check out  Yes that’s the real name of their government website.  Money doesn’t grow on trees, but you can cut the trees down send them to a money factory and presto pronto prego DINERO!

Recommendation: In any mania, don’t invest in the company that mines the “gold”, buy the company that supplies the “shovels” and “picks”.

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  1. Platinumfinger
    September 18th, 2008 | 4:22 pm

    Well the US are on the best way to become a serious opponent for Zimbabwe. But do Zimbabweconomics work in the US as well (question at the experts on this topic)? IMO it takes too long for the US to catch up with the happy people of Zimbabwe. I mean the US only accomplished to de-privatize the banking system and made some really reasonable regulations but then…

  2. September 18th, 2008 | 4:46 pm

    Proponent dude, proponent. I think the whole world is drinking the Zimbabwaid at this point.

  3. samhill
    September 19th, 2008 | 1:51 am

    The markets doesn’t need the boot of authority on its neck, it all comes down to incentives. The market structure was flawed but you can’t fault players for trying to maximize gains, ultimately the credit markets got lazy and started accepting all kinds of crap and the people that realized the folly got paid hush money in the form of cheap CDS premiums, the deal of a lifetime, who was going to sound the alarm with that sort of carrot dangling in front of them.

  4. To The Hilt
    September 19th, 2008 | 8:35 am



  5. HelicalZz
    September 19th, 2008 | 10:51 am

    So you are also a bull on forestry infrastructure I take it?

  6. FuManChu
    September 19th, 2008 | 11:56 am

    Now come on…

    It’s not just the Treasury, ALL the central banks are acting like paedophiles in a playground – handing out candy with a smiling face while sweating profusely.

    And if you’re going after the picks and shovels, the moneyprinter is some French company down the street I think… Though they’re based in the UK.

  7. TexasHedge
    September 19th, 2008 | 12:03 pm

    Check out DLAR LN. It literally prints money for most of the world’s central banks.

  8. Pleb
    September 19th, 2008 | 12:32 pm

    I guess donating 30% of my salary to the “common good”, aka covering the mistakes of morons, isn’t enough. Now they want to collect my f***in’ mortgage payment too. Cripes. I knew I should have moved into that 1.7 mil house on the exploding rate ARM… If you think the govt is going to be turning voters out of the houses they can’t possibly pay for, you are both sadly mistaken and unfamiliar with the term “Section 8 Housing,” which like Corporal Klinger’s long sought after Section 8, involves insanity.

    I see also that Chris Cox is talking about banning short sales. Does this mean I need to cancel my health insurance, since what is insurance but me shorting my own health? Wouldn’t want to do that… I could get in trouble with the regulators if I caught cold.

  9. st0ckp1ck3r
    September 19th, 2008 | 2:36 pm

    This whole mess already stank soo much and now they have to rake it to bring out the fresh stink.

    Meddlesome government trying to plug the holes with fingers which they will soon run out of.

    And out goes the faith in free markets.

    PS: What happens after Oct 2, the shorts will get back on board and the whole cycle will repeat itself?. Crazy.

  10. st0ckp1ck3r
    September 19th, 2008 | 2:38 pm


  11. Platinumfinger
    September 19th, 2008 | 6:32 pm

    thanks to the infinite wisdom of the SEC we aren’t allowed to short those things worth less than shit (with shit you can still fertilize).

    I suggest for LoSC to adapt to this situation and change its name to
    “Long what the SEC and Fed say”

  12. Bear
    September 21st, 2008 | 11:19 am

    You people disgust me. All you liberal, elitist, Yankee ( read Jewish ), Non-Pentacostal, Non-Southern Baptists, Blame-America firsters need to repent. Now, I may be from Alabama, I may be an Asst. Janitor and I may be married to my second-cousin but I love this country and I know the U.S. of A under God is #1. Plantinumfinger doesn’t think we can devalue our currency faster than Zimbabwe? Where’s your sense of patriotism sir? I, for one, know we can. ‘Cause when the going gets tough America has always thrown common-sense economics out the window. I will, in following posts, outline a plan to crush Zimbabwe and make the U.S. currency less valuable than my beloved Confederate dollars based on good ole American Biblenomics.

  13. fizter
    September 22nd, 2008 | 4:41 am

    short the dollar

    long anything that prints the dollar

    ohh and long some of those lucky monkey dollars the money factory prints.