Not out of the woods by any means yet, folks.  In fact, some of the support that the government provided might just prove to be like a financial Vietnam…  A bad situation with  resolution options that are painful no matter which you choose.

Choices

1. I slap you in the face
2. I kick you in the shin
3. I take all of your money

…Get the picture?

Read the excerpt below.  Lovely.  The link to the full article continues below.

We still face serious headwinds in the economy and, as I’ve said many times this year, the current market valuations are ignoring the risk factors of owning equities – an amazing thing considering how recently those risk factors showed up and bit people’s faces off both last fall and this spring.  For example, according to the NYTimes this morning,  American International Group, Fannie Mae, Freddie Mac and GMAC, are not only unable to repay the government, they are in need of continuing infusions that make them look increasingly like long-term wards of the state.  The total risk they pose to the taxpayer far exceeds that of the big banks. Fannie and Freddie, in the final days of the year, are even said to be negotiating with the Treasury about greatly expanding the money available to them.

via Fa La La Friday – Scroogy Swap Prices Blacken Christmas | Phil’s Stock World.

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5. Oil brokerage PVM names rogue trader behind oil spike – Yahoo! News