If You’re Confused, Think About the NYSE

Liquidity, liquidity, liquidity! Yeah, the Dow had its worst week in its entire history. Yeah, we have not seen a market decline like this since 1929. Friday started off really horrifically and ended just plain “bad.” But we can bottom this out if stubborn Henry Paulson and a few other government leaders will simply address the fundamental problem of businesses being able to function, fund payrolls with receivable financing and move on - maybe even stop the mortgage debacle.

This morning’s New York Times underscored the problem: “In the credit markets, conditions went from bad to worse. Borrowing costs for banks and companies jumped once again as investors sought safety in Treasury bills despite earlier signs that the government might take equity stakes in troubled companies to try to halt the credit crisis. It was the worst single day for junk bonds ever, and the cost of borrowing shot up for even blue-chip companies: I.B.M. agreed to pay 8 percent interest on $4 billion of 30-year bonds, about twice the rate at which the federal government borrows money.”

Okay, Wall Street, if it’s tough for you, think about the small businessmen and women who can't even borrow at 10%!! Hey Henry, when is your trickle coming down to the people? When are you going to get the point that the hoarders, the big financial institutions that suckled at the breast of the Federal Reserve, ain’t doin’ no tricklin’?! They're borrowing from you (the Fed - the government) at a low rate and then lending you (the government) that money by using their borrowings to buy Treasuries? If you want small business and homeowners to have local access for basic funds, guess what?! You actually have to get down and get local. End of broken record. Please end the broken credit market with the obvious solution.

I’m Peter Dekom, and I approve this message.