I don’t know if it’s over. I would think that something would have to be done. I hope we haven’t missed the one best opportunity to do something, for like Neil Cavuto said yesterday, the next bill to come along will probably cost us more. There will probably be, knowing the way congress works, something in it for everybody. Vote getting carrots.
Yesterdays defeated bill went down for one reason – the people don’t trust that congress is doing the right thing. Was that the right thing to do? Are will we let it all crash? The ramifications are chilling, to say the least.
NEWT GINGRICH: “I’m not sure if I were in the congress I could vote against it. I think — I mean, if I was the deciding vote, I think a lot of people will vote against it, but I have been talking to people who I respect in the business community who genuinely believe we’re on the edge of a meltdown of just historic proportions comparable to the 1920s.”
“…Let me be clear. I’m about as unhappy as anybody you know. I think that Secretary Paulson ought to be fired. I think this bill has been improved significantly by McCain and by the House Republicans but it is still a bad bill. But I also believe if you have a Democratic congress that the odds are pretty good that none of the things you really need to get done are going to get done. What we ought to be doing is repealing Sarbanes-Oxley which has become a huge mess, we ought to be going to zero capital gains tax. We ought to be reducing the American corporate tax to match Irelands 12%. There are a lot of things we could be doing. We should be controlling spending. We should have an energy bill that is decisive in bringing home most of the $700 billion a year we’re sending to foreign countries.”
The Dow ended the day 778 points down. What that means is that a lot of people were wiped out. People. Mom’s and Pop’s and Grannies down in Florida waiting out their final years…wiped out. Many not completely, but enough.
People that were planning on retiring after many years of working and saving, investing for their future, may not no be able to. All those years of scrimping and saving…gone.
It could get worse, or it could get better. At this point nobody really knows… but it doesn’t look good.
Many, if not most people didn’t, or don’t know what the problem really is. They don’t understand the ramifications of all of it. Many think it’s some guy’s on Wall Street, or a few greedy corporations that are to blame and are the ones that will suffer the consequences. Many don’t understand that the money those people were risking was our money. The money that the “rescue” was rescuing was ours.
The vast majority of people out there in the market weren’t playing the game on there own. And there is a whole lot of people that didn’t understand that they even had money in the market. If they had a 401K, or about any kind of retirement plan for that matter, they were players in this game.
The vast majority can’t play this game on their own. They depend on brokers and whole armies of people to manage their money. And much of their money ended up tied to some bad investments. The rest of it was tied to the other things that fell right along with the rest. 778 points on day one. 778 is a long way down, and that may just be the beginning.
My great hope is that it doesn’t go down further, or if it does, not much. The market doesn’t have to drop thousands of points to wipe out swaths of investors.
Thomas Sowell: “Fannie Mae and Freddie Mac do not deserve to be bailed out, but neither do workers, families and businesses deserve to be put through the economic wringer by a collapse of credit markets, such as occurred during the Great Depression of the 1930s.”
One thing that I hadn’t thought about in this is a point Donald Trump came up with yesterday. Now mind you I’m not the biggest Donald trump fan in the world, I think he’s a goofball. But even I can’t argue the fact the man must be on the ball when it comes to making money, for he’s made piles of it.
Much of what “the Donald” had to say was with the market self correcting and such, but through it all he had a silver lining that he saw through all these clouds… Oil prices.
“The Donald” believe oil is on the way down… big time.
Mr. Trump predicts that oil will follow the market down and that that is a good thing (indeed it is). He said that oil could go as low as, believe it or not, twenty bucks a barrel.
Twenty dollar a barrel oil would do more to stimulate the economy than all the rescue plans congress could come up with. It’s effects would be a boost for ever segment of the market, even every segment of society. It would be HUGE!
It’s a scary world that we look out on today. We sure could use a silver lining in all this gloom. Donald sees one. I hope he’s right. He’s been right a lot before…