The House has rejected the bailout bill, and markets have plunged. The bill was sold as absolutely essential to avert a financial market meltdown. But what if the there is no meltdown? Markets are down now in a knee-jerk reaction. But what if it turns out that the bill wasn't really all that critical? That would be almost unimaginably bullish. The next few days will be intensely interesting. I think there's a good chance we avert disaster, somehow.
I think the ultimate in a slap to the face of Congress would be for the markets to roar back. However, the media will continue to beat the dead horse of The Sky Is Falling, causing people to continue to panic.
ReplyDeleteAs for the bailout...when was the last time the government introduced a program that actually did what it was supposed to, and no make things worse?
I can't think of one...
You remind me of a rule of thumb I came to believe in long ago but seem to have forgotten: when the politicians finally come to the rescue, it is invariably too late and only tends to make things worse.
ReplyDeleteTim,
ReplyDeleteI can remember a time: it was when Congress reversed the Law of Prohibition....and it worked!!! ;)
CDLIC