1:
I think that bailing out poor or disadvantaged people is a lot of what governments do (and what they are supposed to do). While this is not the capitalist thing to do, it is the democracy-driven thing to do. Oftentimes democracy and capitalism are at odds. Its a big part of the reason that FDR (and Reagan) were re-elected.
2:
I think that the nature of this crisis is more akin to a nuclear attack than a Tsunami. We can’t avoid the pain by moving money to other vehicles (though there is some ability to minimize it). This is a global crisis and I really can’t think of an unaffected investment. Again, some may feel a touch less. It won’t wipe us out but it will change our lives.
