The Bailout Plan

[bob]

I don't see why anyone should be worried. The fundamentals of our economy are strong.

The fundamentals of the Space Shuttle Challenger were strong, too. Just not those pesky O-rings.

 

[charlesdwright]

The fundamentals of the Space Shuttle Challenger were strong, too. Just not those pesky O-rings.

Ouch.

 

[hskk]

I am quite skeptical about this bailout bill. Instead, the $700B should be used to create millions of jobs that will enable people to start paying their mortgages. And also, the government should provide loans that are secured by bank assets to the troubled banks, with an agreement that the banks would later repurchase those assets. This can solve the short-term liquidity/credit crunch. And the jobs will lead to long-term economic strength. A win-win for all. But the rich and powerful like to get instant riches and save themselves and I doubt anything along these lines will be done.

 

[Andy Nguyen]

Let me make my point clear.
Our workers are the best in the world. They are the fundamentals of our economy. Therefore, the fundamentals of our economy are strong. (wink wink)

 

[charlesdwright]

Let me make my point clear.
Our workers are the best in the world. They are the fundamentals of our economy. Therefore, the fundamentals of our economy are strong. (wink wink)

Andy, a free people is the best economic engine there is. This situation is temporary. The greatest risk coming out of it might just be overregulation that could stagnate world growth for the foreseeable future.

 

[Andy Nguyen]

Apparently, people don't get that the "the fundamentals of our economy are strong" reference is one by McCain said just a few weeks ago.
When ridiculed, he flip flopped that he meant our workers are strong.

 

[Stefan Zota]

I don't think americans outside of Wall Street understand the urgency of current condition.
Credit market is essential for survival of the economy. You can continue without credit for 1, 2, 3 months. However if credit is frozen, companies will have very high cost to develop their main business.
I am a complete advocate of free markets however that does not mean government should not inject liquidity to unclog the system ...

 

[charlesdwright]

It's no fun having to explain jokes, is it?

 

[myqee]

A couple theories behind the bill failure: some congressman thought there were enough votes to pass the bill so they decided to vote against it so they can tell their constituents that they are with them. Another one I heard is that some of the congressmen saw the international stock market reaction last night and concluded that the international markets were predicting that congress would vote the bill down. So they promptly voted the bill down.

 

[alain]

it's 4:21 PM and the DJ is showing -777.68 net change in my screen. :-ss

 

[GusTsahas]

........ or it could be that the congressmen/women are actually afraid of voting against the strong wishes of their constituents with their jobs on the line five weeks from now!!

Most people not directly employed in the financial industry believe this program will cost them more money in the long term in taxes and interest rate levels then will directly hurt their 401K 's or employment in the short term. Even in NYC, try convincing a bus driver or a teacher who are barely making it that 700B investment in financial assets is the best use of tax payer money.

 

[woody]

If it were January, the bill would have passed. But there is an election in 5 weeks. Every member of the House of Reps is up for re-election. Republicans are especially nervous because of the party's unpopularity. Whatever the reasons, they've totally screwed us. Having a poll make up your mind is ridiculous with a topic like this, where 99% of the people will not understand its repercussions.

Long cash.

 

[Andy Nguyen]

The third largest one-day point drop in DJIA history occurred on September 17, 2001, the first day of trading after the September 11, 2001 attacks, when the Dow fell 684.81 points, or 7.1%. By the end of that week, the Dow had fallen 1,369.70 points, or 14.3%. A recovery attempt allowed the average to close the year above 10,000.

On Sept 29th, the Dow dropped -777.68 (-6.98%) to close at 10,365.45

This put things in perspective.

 

[Stefan Zota]

This is another Black Monday, when everything seemed so clear yesterday...

 

[Yan He]

Just now, a Risk Manager stepped over just chitchat about the plan. He kind of joked that "I think overall population, people without 401K is more than people with it....., Republican is very nervous in voting against most constituents.."

Then a Shanghainese guy sitting beside my cube said: "I don't have 401K." The manager asked "They didn't give you 401K account? (since the guy came from Citigroup in April)". The guy said,"No, I didn't put a penny in 401K..." I was really shocked, not for he gave up the match from company, but...yes, he wins, he is the one didn't loss a penny in this turmoil!

 

[woody]

YouTube - Airplane! -- the wrong week to quit

 

[doug reich]

I would say he still loses; if the company gives a match, it's their money you're losing, not yours!

 

[IlyaKEightSix]

Well, great news! Now is an excellent time to watch for buy opportunities abound! With everyone going nutso in a panic, market inefficiencies should start popping up left and right! Those imbeciles on Capitol Hill (aka the idiots we call "congressmen") will eventually pass the bill unless they want to see our country go down--it's just a question of when.

Gentlemen, start your engines! Or your algorithms. Or your fundamental analytics. Or whatever it is you use to make your decisions!

 

[bob]

Those imbeciles on Capitol Hill (aka the idiots we call "congressmen") will eventually pass the bill unless they want to see our country go down--it's just a question of when.

You're right that something will pass, but the question of when is not a trivial one.

They're pretty much done for the next 5 weeks. Everyone will be out campaigning.

The results of the election will dictate what the House is able to do. If the election returns the House to the Republicans, then essentially nothing gets done until 2009, I think. Same goes if the Democratic margin narrows. No matter how big the problems are, it's very difficult for a lame duck Congress and a lame duck President to get anything done.

 

[Whetstone]

The ideology that a president must be "the decider" when the union is in a state of emergency was finaly rejected. Welcome back democracy.

HA HA HA HA, George "over-the-handle-bars" Bush!


Remember they put up NO PARKING signs outside the Bush Texas White House.
It was quick and very DECISIVE.
No more grieving mothers allowed to park outside the Bush ranch.

NO PARKING or else. And NO! you don't get to vote on it.

:-ss