The Dow went down 350 points today, and it had almost nothing to do with the previous House vote on the Wall Street bailout bill, or the coming vote tomorrow. Instead, the "market was worried about things that may happen whether or not the bill passes. The NASDAQ was down 92 points today, to below the level at which it ended on Monday, indicating it was heading for that level anyway (again, nothing to do with credit, and the bailout will not help). Most significantly, there was a forecast on freight indicating dropping demand, which caused the Dow Trasnportation Index to do down 4000 points--near the top ten of percentage drops of all time and essentially ths same maginitude of the 777 point Dow drop on Monday. While credit problems could be argued to have something to do with the drop in freight, there is nothing in the bailout bill that will solve those problems. The slowdown was already in progress, and will not be reversed by the bailut bill.
As I stated previously today, the Dow was already down as much as 250 points when the expectation was that the bailout bill would pass. The Dow gained back 440 points the next day, when there was not much indication as to whether the bailout bill would ever pass, indicating taht the extra 500 point drop on Monday was the fault of CNBC, and people like those on CNBC (including Barney Frank--almost a regular on most mainstream media programs thses days), who lobbied for the stock market to fall to show those evil House Republicans why they should support this bill.
Oops!!! That blackmail and extortiion, by which CNBC, Barney Frank and the rest deliberatly cost investors that 1.2 trillion dollars have been exoposed for what it is. That extra 500 point drop on Monday has been exposed as a complete, political fiction to be used as blackmail and extortion to get what Wall Street wanted. The stock market substantially recovered the next few days to above where it waswhen the bailout bill was voted down. Yet, the market closed today not only well below that level, but below (as a whole, when the broader indexes are included) the level at which the market closed on Monday. In other words, we lost the same 1.2 trillion, and more, we were gong to lose anyway, even if the bailout bill had passed. House Republicans were not to blame for a dime of it. Those fictional losses (what I will call the CNBC EXORTION and BLACKMAIL fictonal losses) were quickly made up. The real losses soon reasserted themselves, and got worse.
The Wall Street shills at CNBC (another network you should never watch, and I am only sacrificing for you) are at it again. Even though they admit, as they must or lose even more credibility than they have already lost, that today's market losses had nothing much to do with the passage, or non-passage, of the bailout bill, CNBC was still not letting up with the Wall Street propaganda. Make no mistake about it. This is a Wall Street bailout bill that will not help the ordinary person, unless the Wall Street benefits "trickle down" to you). And the Wall St/CNBC/Democrat/Establishment Republican game of extortion, blackmail and fear is still on.
We are being told (propaganda) that the public, and opponents of teh bill, have been convinced by the "tur" on Monday, and the further evidence of economic difficulties, that a massive gov takeover of a substantial part of the financial industry (the lousy part, at taxpayer expense) is necessary to prevent further stock market losses, and to "save" the eco (even though no one can explain how it is going to "save" the economy or create a sudden loosening of credit--loose credti being how we got in this "crisis" to start with).
The new mantra (fromt he evil, totally useless, people at CNBC) is that this bailout bill may not really bail us out directly, but that it is necessary for public and business "confidence". Notice the circular reasoning here (and these are the kind of people that accuse Palin of circular reasoning). "Public confidence is down becasue we have drivin it down with talk of absolute doom if the government does not intervene to bail out Wall Street. Then we falsely said that a politically inspired, one day drop on Wall Street proved that we could not afford to fail to pass the bill. Now we say, after the market proves that the one day drop was fictional, but there are real problems not related to the bailout bill, that the confidence we have shaken will only return if we pass the bailout bill. However, we are also saying that this will be so only because the pubic will listen to us, and be reassured, and not because the bill will solve the fundamental problems in the economy."
I will translate for you: CNBC just admitted that they, Paulson, Barney Frank and the rest are responsible for a good part of the economic pain we have suffered because they have exaggerated both the bad shape the eocnoomy is in and the need (not to mention ability) of this bailout bill to fix it. Yes, I am blaming CNBC, and the people like them (mainstream media, other proponents of this bailout bill, and the various establishment people and politicians) for ruingin our economy with an unrelenting drumbeat of bad news. Then they say that they know how to fix it, by restoring the "confidence" they have destroyed by exaggerating the bad news instead of working to reassure everyone to start with.
Yep. I am saying we would be much better off if CNBC, and the rest, had reported the economomy's woes in perspective in the first place. I am saying that we would now be much better off if Hank Paulson had not tried to scare us into putting him in charge of correcting his own mistakes, but had concentrated on highlighting the areas where the economy is strong, and reassuring as to our ability to weather the housing "bubble" bursting. Instead, we got "doom and gloom", and the markets "froze" (predictably went on hold) waiting for the government bailout (instead of working to correct/weather their own problems).
Yep, again. It is CNBC, Paulson and the rest that caused our credit markets to stay frozen by an ariticical atmosphere of scare and crisis. We oublc have still been better off it the Paulson plan had been promptly rejected. But Paulson, Wall Street, and CNBC have resued to give up, as have the Democrats and the establishment Republicans. So we have been stuck for several weeks--the whole business community in the country--waitng for the government to act (except forGE, Morgan Stanley, and Goldman Sachs raising tens of billions of dollars, which indicates money is certainly not "frozen").
The mainstream media and Democrats have done their best to ruin this economy over the past year (really the past six years) with exaggerated netativity and scare. Paulson (really a Democrat) then joined them (Limbaugh sees a possible consipiracy in that; I see a uniformity of outlook that the government is the answer when your pals on Wall STreet get in trouble).
Now the mainstream media, leftist Democrats, Wall Street, and the establishments that always favor government action in the end, all want to take government action to restore "confidence" that they destroyed by both negativity and failing to take action to addrees the real problems building. Now these same people want to throw taxpayer money at the roblem (and a lot of pork), while waiving a magic want and restoring the confidence they destroyed by not noting that "all we have to fear is fear itself".
They won't be able to do it. There is no chance this bailout bill will do any good. There is a certainty it will do massive harm, including setting the wrong precedent for the foreseeble future. Big Government type are already asserting the need for massive further taxpayer (government) actiion.
We wil be much better off if the bailout fails, and I have not changed my mind at all about voing against anyone (forever) who votes for, or supports, this bill. Sure, the "market" will go straight down on the bailout rejectioin (as CNBC, and people like those at CNBC, have "told" it to do). However, as on Tusday, the market will quickly recover to the levels it loses, with better long term prospects. If it fails to recover, or again falls back like it did today, that will simply mean that the market was headed there anyway. We will be better off addressing the underlying problems then, than we will be throwing taxpayer money into a Wall Street bailout. Under every realistic scenario, we will be better off in the end to reject this bailout.
House Republicans are under enormous pressure, as the mainstream media and the establishments heat up the blackmail, extortion, and propaganda. I doubt they will be able to stand up to the pressure, even though they are right. But I was pleasantly surprised on Monday (even though CNBC cost me a lot of money). I hope tobe pleasantly surprised tomorrow, without expecting it.
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