The Present Financial Mess, Again Reconsidered
So the bailout vote failed, and the Dow has toppled around 6% ($1.2 trillion in value). What does it say about the state of the companies making up the Dow Jones Industrial Average (DJIA) when their value falls for lack of a socialized bailout? It strikes me that the government has become too entwined in our economy. What does it say about the bailout when a Democrat-controlled House and Senate can't pass a supposedly no-fail bill and insist that it's Republicans' fault? It seems that the bill they wanted to pass was a mess.
And we continue forth into unknown territory. Can we force Fannie Mae and Freddie Mac to NOT issue anymore "sub-prime" loans? Will we afford to throw people out of homes they can't afford to pay for? Should we allow people who still have free cash to buy up the bad loans? Unknowns, all. But there are things that can and should be done, which don't require massive government spending or deeper intervention into the economy. But we're in a crisis! We need help NOW!
Fine. Make the bailout. I'm tired of hearing it. The Democrats control the Congress, and the President is behind a bailout. So what's the problem? They don't have the votes. One must simply wonder why. All I want is the unlimited license, once the bailout goes through and things are made worse, to say I told you so. Because you know I will.
My bank, Wachovia, is about to be eaten by Citibank. The press release can be found here. Apparently, Wachovia had eaten a savings and loan that dealt heavily in subprime mortgages, which weakened its position, along with Washington Mutual. Great. Will I get any bonus as a customer because I've always paid my bills on time?