Bailout Flameout: House Rejects Bailout Bill, Dow Nosedives 777 Points |
When I got the news that the House had rejected the bailout bill, my jaw hit the floor! We all knew the Dow had been under pressure pre-market and from the opening bell, but I thought the political pressure to act fast would have been overwhelming, but it didn’t turn out that way.
Stunningly, members of both parties saw things in the bill they didn’t like and they balked not only at the provisions in the bill but the price tag as well and voted the bill down. The market reacted just as you would have expected. Down hard.
If past experience is any guide, tomorrow should be a wild day on Wall Street. If the Asian markets sell off later this evening, the Euro zone markets will take their cue from them and sell off in lock step.
I can’t help feeling angry at the incompetents both inside the financial markets who never met a loan they didn’t like, to whom 30 to 1 leverage seemed like a prudent risk and toward the “regulators” inside of government who are handsomely paid to be our watchdogs while we are working 45 to 60 hours a week so that we can pay their salaries.
It’s time some folks got fired and some others need to go to jail. I hope the public won’t forget this episode in American history. This 2-3 trillion dollar debacle is not going to be swept under the rug. The public didn’t get it’s money’s worth and it’s time for the taxpayer’s to be paid back by the financial market pirates and the government pirates who just wrecked the economy.
~~John Cronin
Tags: Federal Bailout Plan, Pirates