Definately a bear market, in every sense of the word.
Far different than the Paulson Fortune 14,000.
The markets are global. During the current departing administration that reality was made a priority. Wall Street opened up venues in Europe and Lord only knows where else. That 'broader' sense of uncertainty adds to the possibility of the markets doing worse than even at the time of September 11th.
Speaking of September 11th, wasn't that magnanimous of Ayman al-Zawahiri (click here) to send such a warm greeting to the NEW leader of the free world. And don't believe for one minute that the rise of the ugly head of al Qaeda didnt' impact the market today, because it did.
At any rate, the uncertainty is due to the gross mishandling of the 'bailouts' and the path countries took to attempt to 'rescue' their faultering stocks. The poor judgement to date by Bush / Paulson has ADDED to this turbulence.
There is even more upsetting news in that, the USA isn't being stupid anymore in regard to its 'free money giveaways' noted today with the auto makers.
Its ONLY a 5% drop. The markets are still within the range of 8500. I'll maintain confidence in that capacity right now, although more monies are headed for bonds rather than stocks now.
7,997.28
–427.47
–5.07%
Did everyone catch the appearance of Michael Moore tonight? You should have. He is more than correct in that the car industry is NOT going to be waging the dog this time.
The majority Democratic Legislature is taking a hard look at the 'bail out' by Paulson after the continued failure of AIG. They are looking at the car manufacturers and wondering if any bailout WITHOUT a structured bankruptcy will ever work and IF there were a 'Free Money Giveaway' would the USA funds end up giving jobs to Europeans or Russians or otherwise.
The USA cannot continue to increase the debt WITHOUT returning jobs to the economy to widen the tax base and allow Americans to keep their homes.
And why provide a 'bailout' for companys that CONTINUE to deny the American consumer the products they are demanding? Why should the American Taxpayer provide any monies to an industry that continues to INSULT OUR INTELLIGENCE?
That makes sense?
No, it makes no sense.
For $25 billion, the federal government could go to Michigan and take over the current infrastructure, remodel it (WHILE PROVIDING JOBS TO THAT REMODELING PROCESS) and finally have a product that helps the USA achieve its goals of stemming Human Induced Global Warming while providing a thrifty car to Americans that puts 'disposable income' back in their pockets rather than the coffers of Big Oil.
Perhaps the Auto Manufacturers' CEOs and Wall Street didn't notice the campaign slogan of the Obama campaign. It was only one word. Just one word. Do you remember? Easy one. Go ahead I'll give you three guesses and the first two dont' count.
There ya go. See you remember now. Yep.
C H A N G E.
The difference though is that THIS TIME, the President-Elect really means it.
So, today when the three freshly 'jetted' CEOs gave their 'prepared statements' we all knew they were lying like hell ! They all made what can easily be coined as 'POLITICALLY CORRECT' statements. You know, like the rhetoric of Bush, Rove and the Republicans.
'Key Words.' - "International Monetary Crisis." "Global Economic Crisis."
Never once did any of the three honestly state, "We really blew it all these years and dictated the type of product the American consumer could have rather than giving them what they wanted and NEEDED.'
So, there you have it. Wall Street DOESN'T UNDERSTAND Main Street. No surprise there. In not understanding Main Street, Wall Street doesn't know which way the wind is blowing and whether its filled with concern for Arctic Air rather than oil and natural gas.
There is also the issue of falling oil prices. That has an impact. That trend may continue for at least one more year. After a year, the price of oil is again believe to skyrocket. Where does that leave future investments? If in one year, there is increased inflation because better and less expensive forms of energy haven't been harnessed than what will happen to consumer's prices and the best outcome of Wall Street?
Add to that, the awakening that al Qaeda is still 'out there' and doing well with threats by Omar to march into Kabul with protections of Karzai, the resurgence of the Taliban in Pakistan, Ayman al-Zawahri calling the President-Elect a 'house negro' and the pirating of ships, and there is a lot of reason to be fiscally restrained, don't you think?
So, with all that, there is a new kind of bravery that Wall Street can't seem to muster.
I say to that 'fine' we can do without all of you to rebuild this country. And its true. Oh, yes we can. We rather not, but, if it means 'more of the same in government' than keeping and protecting the future of our democracy, our Constitution with our children in mind, than Americans will make the sacrifices. They will 'stare down' the lousy demons handed to us by over 30 years of Republican exploitation of this country and 'Take Our Country Back' and that ain't just politically, 'We Want It All Back.'
Go figure, huh?
