Day September 6, 2008

Highway fund shortfall

Federal funding for highways is running out because it is funded by taxes on motor fuel, and people are driving less because of high prices. So, there’s a revenue shortfall.

Two storms coming

Hurricane Ivan and the Fannie/Freddie takeover are both unpredictable and capable of extreme damage. The takeover seems a desperation move will almost certainly trigger massive blowback (unpredicted consequences of actions.) No one knows if the financial levees will hold.

On the Frannie and Freddie takeovers

More broadly, this isn’t a big surprise, but the timing of this coming after Bill Gross’s missive yesterday really rankles. Does everyone have to hop every time Gross complains? Is he the bond market incarnate, or just channeling its animal…