TARP is working so far

With all the hyperventilating and angst about the TARP, perhaps one should look at some facts before becoming awash in opinion.

What was the objective of the plan ? To save the banking system. What are the facts now ?

Source: WSJ paper edition for Wednesday November 12, 2008.
1. One month LIBOR is 1.48%.
2. Nonfinancial commercial paper for 180 days yields 2.35%.
3. Bankers acceptances (used in foreign trade finance) for 90 days yield 2.53%.

Obviously the initial phase of Paulson's effort has worked.

The principal problems now exist further down the lender food chain, viz. certain consumer loans and and corporate bonds.

Market

More hedge fund liquidations. I have no idea when that will end as the Panic of the Rich continues.

Can someone tell me why it is "news" that some economies are in a recession ? Have we not been hearing this angst for almost nine months ?

By the way, industrial output in China was up 8% in October.

Korea offers $16 billion in trade finance. This is good.

Actions

Mrs. B did a small bit of buying yesterday and is contemplating more. I am waiting to add to my long term favorites. If AAPL goes much lower, I'll have to re-buy it later this month when the wash sale window opens.

Word of the Day

"Swan" - verb, intransitive [$10 or $100 depending on your dictionary] British colloquial, usually followed by 'about', 'off', etc.)
Swan means (in this usage) to move or go aimlessly or casually with a superior air.
Sentence: As pure libertarians swan about mouthing their theories about "markets" never being wrong, facts pile up daily that markets are wrong quite often. Anyone who read those classics such as "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay and "Wisdom of Crowds" by James Surowiecki should know that.