06 October 2008

So Much For the Bailout?

A ripple effect followed the sun from east to west this morning and the U.S. stock market followed Asia and Europe into a deep plunge. As I write, the market was down by approximately 450 points according to the Dow Jones index. If the congressional bailout was supposed to prevent this, then it may have already failed. A government cannot command people to have confidence in the economy. Over the weekend we'd been warned by people from the President down not to expect immediate positive consequences from the bailout. Some went so far as to say that things would continue to get worse before improving. It makes you wonder whether the bailout will have anything to do with the eventual improvement. I wonder how much worse things could get if the bill hadn't been approved and signed. It probably would be worse for some people, but whether we should have been worried for those folks is still an open question. Senator McCain and Senator Obama will have some 'splainin' to do at tomorrow's "Town Hall" debate.

1 comment:

crhymethinc said...

I suppose the first thing to do is to research what the major businesses were on the stock market back in '29 and how they related to the general economy. As I've said since the beginning of the talks about "bail out", my hunch tells me it was mostly bs from the start. I really don't believe it would have led to another "great depression", and even if it did, the long term outcome would probably have been better than the short term outcome of the "bail out".