Ever since the original $700 billion bailout proposal was suggested, I’ve been wondering how this figure was arrived at. After all, why not $600 billion or even $900 billion? You’d think that maybe for some time a group of sharp economists and bankers in the know have, behind closed doors, pored over stacks of numbers and reams of papers trying …
Holding Forever?
After Monday’s drubbing, the markets roared back on Tuesday with the major indexes more than cutting their losses in half. The only fly in the ointment was that the rebound occurred on weak volume suggesting that not everyone was convinced that this would be more than a dead cat bounce. Of course, the big factors behind the comeback were hopes …
Rejected
The bailout package was rejected yesterday and, with Dow being down some 300 points as the announcement was made, it dropped another 300 points within seconds thereafter. Rebound attempts failed and all major indexes suffered steep losses not seen since the last bear market of 2001. The S&P; lost some $700 billion in market value and, I hate to say …
Will Gold Be The Savior?
With Washington’s circus performance in full swing, reader Tony had this to say: The Fed is printing all this money to create the cash needed to fund whatever form this bailout takes, right? And if, ultimately, a plan will earn a profit for US, how do we know the money will be applied to reduce the ridiculous dept they are …
Sunday Musings: My Personal Bailout Plan
OK, I have to admit it, the following is not my idea, but it was sent to me by reader John, and I believe it’s currently circulating on the internet. It is is one man’s great alternative to a different bailout approach. It’s simple, funny, on the spot, certainly beats the alternative and is a worthwhile read: I’m against the …
Spreading The Fear
The hype and angst surrounding the bailout proposal has been enormous, and I have to wonder if much of it was by design in order to shove this idea down peoples’ throats before much analyzing could be done. Dr. Housing Bubble featured an excellent article on the subject. Here are some highlights: As I eagerly await the bread and circus …