The Nikkei closed at a 9.38% loss.
I really have nothing worthwhile to say about this. It's just staggering and upsetting. Who knows what the next few days will bring for the global economy.
Showing posts with label Wall Street Crisis. Show all posts
Showing posts with label Wall Street Crisis. Show all posts
Wednesday, October 8, 2008
Friday, October 3, 2008
The Vice Presidential Debate Effect
I now have 90 minutes of my life I'll never get back. Biden was Biden and Palin Palin. Palin didn't tank and Biden didn't wow. Way to keep the status quo guys.
On a separate note, I understand that the Wall Street crisis was in large part due to, oh let's say Wall Street. However, demonizing wall street is getting a little old. How about Washington? McCain/Palin were GREAT at pointing out the flaws in the "good old boy network" of Washington when Palin was chosen as the VP nominee. And now? All we hear is that McCain warned his fellow Senators in 2005 that Fannie and Freddie needed to be regulated more closely. And that Sarah Palin understands what it's like to sit around the dinner table and worry about your personal finances. (For some interesting accounts of Greenspan discussing Fannie with several Senators, check out this article.) Good for McCain's ability to pick up on that fact, but he still wasn't able to accomplish anything with those warnings and what about actions since then? Does McCain never talk to Wall Street? What about his actions on the Commerce Committee? Why did he change his mind on the bailout so quickly? (I happen to agree that he needed to, but not without a better explanation. I'm sick of hearing "We have to help the American people. Get Main Street back on its feet." I agree, but how do you propose doing so?
These are all things that need to be explained, and I have been behind McCain since he was losing in the primaries.
On a separate note, I understand that the Wall Street crisis was in large part due to, oh let's say Wall Street. However, demonizing wall street is getting a little old. How about Washington? McCain/Palin were GREAT at pointing out the flaws in the "good old boy network" of Washington when Palin was chosen as the VP nominee. And now? All we hear is that McCain warned his fellow Senators in 2005 that Fannie and Freddie needed to be regulated more closely. And that Sarah Palin understands what it's like to sit around the dinner table and worry about your personal finances. (For some interesting accounts of Greenspan discussing Fannie with several Senators, check out this article.) Good for McCain's ability to pick up on that fact, but he still wasn't able to accomplish anything with those warnings and what about actions since then? Does McCain never talk to Wall Street? What about his actions on the Commerce Committee? Why did he change his mind on the bailout so quickly? (I happen to agree that he needed to, but not without a better explanation. I'm sick of hearing "We have to help the American people. Get Main Street back on its feet." I agree, but how do you propose doing so?
These are all things that need to be explained, and I have been behind McCain since he was losing in the primaries.
Wednesday, October 1, 2008
Updated Full Text of the Emergency Economic Stability Act of 2008
Nothing like 451 pages of legislative goodness to ward off a possible emergency...
I have not had the time to wade through this... although I'm glad to see all the reminders that "the taxpayers' risks must be kept to a minimum" and that things such as homeowners' abilities to remain in their homes, safety of retirement funds, and economic enhancement need to be "kept in mind." Thanks for that reiteration Congress... always good to know you have the rhetorical interests of "main street" at heart.
I have not had the time to wade through this... although I'm glad to see all the reminders that "the taxpayers' risks must be kept to a minimum" and that things such as homeowners' abilities to remain in their homes, safety of retirement funds, and economic enhancement need to be "kept in mind." Thanks for that reiteration Congress... always good to know you have the rhetorical interests of "main street" at heart.
Tuesday, September 30, 2008
Oh, Congress... Why the Bailout Mattered
The Wall Street Journal astutely captured the importance of what is now the failed bailout. Here are my thoughts on the debacle:
Well, the Dow didn't drop the critical 10% level and thankfully is on the rise after opening this morning. HOWEVER, we are now virtually certain to sink into a recession. There is no credit in the market... making a substantive, rapid rebound incredibly difficult. The Asian markets only lost about 4% and Europe is recovering slightly. I hope this means a true crisis was averted.
Yet, in what has escalated to be a legitimate financial crisis - which does affect everyone in the country (and the world) not just rich wall streeters and greedy politicians (greed being substantially different from wealth in my opinion... at least wall streeters produce something of value... or lose something of value not merely political power, approval, and a stream of endless favors based in worthlessness) - politicians couldn't get over their own political interests (even if supported by their constituents) to solve a problem. Not that the bailout would have been a permanent solution, or even a good piece of legislation. But, it would have served the immediate purpose of calming the critically unstable global markets. And, as many people pointed out this morning, the drop in the markets yesterday cost over $1 trillion to the U.S. economy instead of being bailed out with $700 billion. Personally, I would gladly have taken the $700 billion cash infusion that possibly could have prevented another $300 billion in losses and stopped the impending recession. Recessions are when losses become even more sickening to calculate.
As a proponent of extremely limited government and fiscal responsbility, this bailout is by no means a perfect or even desirable solution. But, sometimes in life we have to do things not for "the greater good" as so many people believe, but for overall [economic] sustainability. The Congress had its chance to restore market confidence and it failed because representatives are afraid they will lose re-election in November. By all means, I hope they ALL do.
Well, the Dow didn't drop the critical 10% level and thankfully is on the rise after opening this morning. HOWEVER, we are now virtually certain to sink into a recession. There is no credit in the market... making a substantive, rapid rebound incredibly difficult. The Asian markets only lost about 4% and Europe is recovering slightly. I hope this means a true crisis was averted.
Yet, in what has escalated to be a legitimate financial crisis - which does affect everyone in the country (and the world) not just rich wall streeters and greedy politicians (greed being substantially different from wealth in my opinion... at least wall streeters produce something of value... or lose something of value not merely political power, approval, and a stream of endless favors based in worthlessness) - politicians couldn't get over their own political interests (even if supported by their constituents) to solve a problem. Not that the bailout would have been a permanent solution, or even a good piece of legislation. But, it would have served the immediate purpose of calming the critically unstable global markets. And, as many people pointed out this morning, the drop in the markets yesterday cost over $1 trillion to the U.S. economy instead of being bailed out with $700 billion. Personally, I would gladly have taken the $700 billion cash infusion that possibly could have prevented another $300 billion in losses and stopped the impending recession. Recessions are when losses become even more sickening to calculate.
As a proponent of extremely limited government and fiscal responsbility, this bailout is by no means a perfect or even desirable solution. But, sometimes in life we have to do things not for "the greater good" as so many people believe, but for overall [economic] sustainability. The Congress had its chance to restore market confidence and it failed because representatives are afraid they will lose re-election in November. By all means, I hope they ALL do.
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