The Big 3: Still Think I'm Crazy, American Express: Welfare Institution, And Bankruptcies Would Be Bullish

Here’s what I was asking myself rhetorically today:

1. Still Think I’m Crazy?

2. American Express: Welfare Institution

3. Bankruptcies Would Be BULLISH!

1. Real headline of the day: “U.S. Housing Prices Collapse at Near-Depression Pace After Purchases Slide.” Think about that for a minute. We’ve thrown trillions at housing and nationalized the entire mortgage industry in the last year in the name of propping up housing and a year into it, prices collapse like they did in the depression. People used to think I was crazy for saying the bailouts create depressions. Still think I’m crazy?

2. Another real headline this Christmas week: “American Express Wins Approval to Get $3.39 Billion in Capital Under TARP.” If AmEx is insolvent without this welfare, then why don’t the people who were rich enough to take on the risk of owning AXP have to deal with the insolvency before we taxpayers do?

3. I’ve said many times on this show that I wouldn’t buy a homebuilder until we finally see some bankruptcies in the sector. Don’t you see that giving welfare instead of forcing bankruptcies on all these rich people and big companies who managed their money all wrong is bearish and not bullish like these people keep telling us?