Tuesday, September 30, 2008

One blogger's view on economic problems

From Chris Sloan at inkspot printer:

Let’s Try This Again

So the plan had a few holes and not all were on board…at least the majority.  The frustrating thing about the bail out to me is that it didn’t happen yesterday, two weeks ago or even a few months ago.  This financial crises started years ago.  With the right ingredients (and we had them all) the perfect storm hit and hit hard.  While not alot of volume was traded yesterday, that negative number scares the crap out of people (Nancy Pelosi, please shut your trap, bad day to get a hang nail you’ve been wrestling with for the last 8 years)
This plays right into the hands of the Democrats…fear is Obama’s best weapon, he’s got nothing to pull out of his hat that doesn’t scream tax the American people to death…but fear is working and I’m afraid that lots of people are beginning to drink his cool-aide.  Obama is praying that this crises continues for another 35 days, sure makes his fear campaign that much stronger. 
Obama’s thought process is extremely scary, you could see the inexperience in his responses during the first debate.  We can’t have that in the oval office.  Talked to two Democrat at the bus stop this morning and ALL they can say is that it’s Bush’s fault.  As a marketing guy, Obama and the liberal media have done a masterful job in getting people to swallow this kind of thinking.  Bush’s players probably did take their eyes off the ball, didn’t continue to ralley for new and creative ways of helping fix the finacial crystal ball that had crazy written all over last January…we got lazy…greed set in.
Was watching a Reagan piece on PBS the other night and it’s fascinating that at the end of his first term the state of affairs we were in vs. today.  The similarities are fasinating.  Wish we had a Reagan type today.
While I don’t understand all of the intricacies of the financial vehicles, I do understand basic credit/debt balance sheets.  My sister works for an arm of AG Edwards, i.e. Wachovia.  Was she happy Citigroup came in and took over their banking debt, I’ve heard numbers as high as 100 billion in bad mortgages.  Now they could get back to an investments, money management company.  My fear is that while this makes Wachovia good for the time being, what will happen to the Citigroups of the world…will their books reflect this huge debt, or will they be whiped clean as the assets over time (let’s pray) help ease the public’s discomfort.  This is really what Bush pushed for this morning (Sept 30th).
FDIC - 100,000 to 250,000 to insure…banks pass this onto the customer to pay for it so there is no free lunch here.

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