Time to get to know our new masters

The other day Mrs. CaliBlogger, understandably concerned about the burgeoning financial brouhaha, asked me about the security of our primary bank, Union Bank of California.

I blithely told her that the main problems were with investment banks and that regardless, our minuscule deposits were FDIC insured.

She (darn her and her inconvenient facts) pointed out that WaMu and Wachovia were commercial banks. She also wasn't clear on what kind of rigmarole the FDIC would put us through if worse came to worse.

So, as always when faced with a troubled mind, I sought the wisdom of the Delphic Oracle known as the internets and soon found out something interesting indeed, my UBOC had just been bought out. Indeed the buyer (Mitsubishi UFJ Financial Group) has been working on this for a while. And, if you think about it, such deals aren't particularly unusual.

Big companies buy out smaller companies all the time.

So that got me thinking, instead of holding auction where the US government buys out bad debt instruments, shouldn't we be working instead on selling off these badly run Wall Street behemoths to the highest bidder?

Central banks all over the world are sitting on mountains of dollars. If market liquidity is the problem why not encourage those governments to use those dollars to "buy American" if you will.

The way the market's crashing there have GOT to be some bargains out there.

And sure, it'll be a little weird that GM will be owned by the People's Republic of China, but I bet they'll give us great terms on that next Hummer.