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If Circuit City can’t make it, what hope is there for the rest of us? Well, at least I might get a good deal on a wireless mouse and a new wristpad for my keyboard. The old one is coming unglued (as you can see below, it looks like a blue mystery-meat hoagie).

pad

What’s good for the consumer these days might not be so good tomorrow. I keep hearing about how bad this economy is (the worst since the Great Depression?) , and it’s a cliche that a recession is when a neighbor is out of work and you have to write about it, a depression is when you are out of work. But I can’t quite wrap my head around it.

Maybe it’s because I work from home and have no one to talk to to stoke my fears. Or maybe it’s because people in general err to the positive or the negative, and the muddlesome truth is impossible to tease out.

All I know is a lot of people are losing their jobs with little prospect of getting a new one. I doubt their bank accounts will carry them through whatever’s coming. They can sell off assets, but the more people go that route, the less they’ll earn. More supply, lower prices. At least newspapers might see a small uptick in classified sales. Good luck collecting payment.

Someone should study winning bids on ebay to see if the average is up, down or unchanged. Yes, it’s a lot of apples to oranges, but still. There must be some method that could cut through the madness. Reading this makes me wonder what other statistical nuggets ebay might be able to cough up, if pressed.

Thus, the question. Do I buy a new wristpad or wrap duct tape around what I have? Or should I spare the duct tape to repair a more valuable asset down the road before posting it on ebay?

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Set your hypocrisy radars on high alert. Just don’t expect anyone to reconcile the AIG bailout with the values of a government supposedly in thrall to the belief that the market is the ultimate arbiter of all that is good and true.

As we’re learning, the market can dish out some ugliness, too. But is it really a new lesson? Not for the workers who used to make Ford minivans. Or the workers that used to make toys, lawn mowers and televisions. Nor is the market’s ability to inflict pain news to anyone who has to fill up a gas tank or pay for their own health insurance.

But in all of those cases, we let the market do its work, or at least profess faith in its ability to do so over the long run – if, for example, we could clear out those silly government bans on offshore drilling. But when you’re an investment bank or an international insurance company, I guess drill, baby,  drill – or retrain, baby, retrain – isn’t the answer. The answer is a multi-billion-dollar loan.

I laughed when morning news anchors on CNN lamented AIG’s interest rate of 11.5%, calling it high and an incentive for the company to look elsewhere. Funny, but I don’t recall any journalists wringing their hands over the rates charged to people with credit cards (20%-plus) or the rates charged to subprime borrowers.

Seems to me, if your business is a credit risk and teetering on the edge of collapse, you should pay higher rates. No lender throws good money after bad at a low rate. Well, not anymore, anyway.

Another ridiculous argument in all this is the claim that the collapse of AIG would lead to higher borrowing costs. Higher costs for whom? Certainly not for people buying cars and houses, the two major purchases for most consumers.

The automakers would go lower than 0% if they could and I don’t see that changing – unless they get a bailout of their own. The same incentives apply to housing. If rates rise, home prices likely will fall, making them more affordable in the long run, not exactly the worst news in the world.

Yes, it sucks if you already have a house and the value falls or simply doesn’t go up year after year. But look on the bright side. You own a house. And now you own an insurance company, or at least a 79.5% stake in one. I can’t wait for my first dividend check.

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