"ALL CAPS IN DEFENSE OF LIBERTY IS NO VICE."

Tuesday, September 30, 2008

FAILURE OF DEMOCRATIC LEADERSHIP!!!


Yesterday's fall in the US stock markets resulted in a loss of approximately $1.2 trillion in market value.

That's more than the proposed financial rescue package!

Meanwhile the Democratic leadership (sic) in Congress has now failed - twice!!! - to pass any legislation that might restore confidence in the banking system.

Why don't the leaders in Congress make sure they bring a bill to the floor that they know will pass?

They are either playing a game of partisan brinkmanship or incompetent - or both!

Don't be fooled into believing that the situation is so bad that any solution would be positive: the cure could have far worse long term ramifications. Some investors have or will profit from this fall. Governments can now sell their bonds at lower interest rates.

And we must reject the premise that this is a American Problem. (Remember Northern Rock?) It is a breakdown in the Global System of Interbank lending.

IMO: Greedy and incompetent bankers throughout the world (including Central Banks) funded the asset bubble - and now they are paying for the market correction which has been underway in the Real Estate market for the last year!!!

When the sh*t hits the fan everyone looks to the United States to come to the rescue - with soldiers and money. But America should not and can not do this one alone.

5 comments:

geek said...

Failure of the Democratic Leadership, perhaps.

However if you turn back the clock 48 Hours it was the Republicans extolling Senator McCain for getting the deal (opps failed deal) done.

You can't have it both ways.

Everyone screwed up by calling this a bail out.

Its debt consolidation and the political points attempting to be scored by saying we are making the fat cats fatter, costing us all.

Where were all of these people who now have disdain for the wealthy on Wall Street when it came to tax cuts for these greedy bastards. Oh I forgot its trickle down.

The trickle down works, it includes debt.

DJ Sartin said...

I find it baffling that the Feds simply issued Billions of Monopoly Money and showered banks with it just hours before the NO vote came on the 700B Bailout bill.

We’re definitely not being told everything we should hear and perhaps those who did vote no had gotten wind of this happening?

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahwz_k5JvuB8&refer=worldwide

I didn’t even hear anyone in the media comment on this, did you?

And perhaps this is what was really behind the stocks going back up?

DJ

DJ

Anonymous said...

Well it bounced back 500 points today so technically we didn't lose 1 trillion because of the bailouts failing.

The Fuzz said...

very good blog

northern seer said...

Geek -I point out the failure of the Democratic Leadership in the LEGISLATIVE PROCESS in the hope that voters will remember come November.

DJ - Yes - the Central Banks are pumping liquidity into the markets because banks have no trust in eachother...but they are lending it - not creating new commitments for taxpayers.

There are so many weird financial instruments out there that no one undestands what they are worth. I dont think Wall Street got drunk -they went to a Rave and did all the designer drugs they could!

bandit a la mode: my comparison of proposed bailout to the one day $1.2 trillion loss of market-value was to put the cost of the package into perspective.

The most important thing is to stabilize world financial markets so COMMERCE does not stagnate.

Unlike the Cental Bank's injection of liquidity, the US Government could reap extraordinary benefits if they do it right - just like AIG or Buffett's investment in Goldman Sachs.

Jeez - imagine if Poulsen and Co were really manipulating these markets...they could have the Federal deficit erased in a few days of these roller coaster rides...