Monday, September 29, 2008
The Bailout Did Not Go Through
I'm not sure if anyone was following the proposed $700 billion bailout, but it was rejected in the house today. Treasury secretary Paulson tried to provide assurance to Investors that he and the treasury would do their part to provide support for the hurting market, but about 32 minutes before the close of the market, the DOW was down over 500 points. I intern with an investment company and I attended a conference about a week ago where they talked about playing it safe and sticking with mutual funds. This way, you are not as exposed to the market like stockholders are. All we can do now is hope this is just one of the cyclical contractions that are seen in the market from time to time; the market will eventually purge itself of the toxic waste and then recover. The average recession is about ten months; if this is what happens as a result of the bailout, at least we know what to expect.
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Dude, our economy is so screwed. Government intervention in a free market is always a problem but i think the problem was created a long time ago. We need to have certain govt regulation and the rest free market (a delicate balance). We need to have a supporting mineral, metal, or something tangible to back our currency. Transportaion and banking and money production and safety and emergency should be some of the very few areas that should be regulated. I can tell you lots of people are going to suffer from the banking industries lack of moral management and deregulation. Also, The telecom act of 1999 was a huge factor into allowing all this to start. The US is a big ship and big ships take a long time to fully turn around. Certain acts and laws will not be noticed for years and years to come and when the realization surfaces it is often too late. Hold your money tightly!
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