Friday, September 19, 2008

September 19, 2008 the Day the US became Socialists

After a week of a near meltdown on Wall St., this week ended with resignation on the need to address the rootcause of the financial crisis - the billions in outstanding mortgages that were at risk.

Never have we seen anything like this - this past week is just the beginning. We thought the subprime mortgage fiasco and the housing bubble collapsing was bad, but that was just the tip of the iceberg.

Even the experience with the Savings & Loan Crisis experienced in the 1980's doesn't compare in scale to what we have experienced this past year.

Many economists are seeing the possibility of a problem of such massive proportions as bad as the Great Depression.

The Bush administration, moving to prevent an economic cataclysm, urged Congress on Friday to grant it far-reaching emergency powers to buy hundreds of billions of dollars in distressed mortgages despite many unknowns about how the plan would work.

Henry M. Paulson Jr., the Treasury secretary, made it clear that the upfront cost of the rescue proposal could easily be $500 billion, and outside experts predicted that it could reach $1 trillion.

The Treasury in preparation to support the Fed, they've apparently sold $200 Billion in Treasury Securities.

Today has marked the frustration and disgust of many Americans over the bailout of Financial Institutions at the Taxpayers' expense.

The frightening question is how far does this go? Will this be enough to ease the credit crunch?

Today clearly marked the choice for new leadership, but the reality is that the incoming President will be facing massive challenges with two wars, trillions in debt, an economy in recession, and energy crisis.

People often question how Bush 43 will be perceived over time. If anything, George W. Bush will always be infamous.
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1 comment:

thoughtmarxist said...

The US has had a "mixed" system since the 1930s. Cyclical variations are the norm. J. K. Galbraith's model of gov't. involvement to lessen the "valley" effect is the current model. We (the people) have to suffer for capitalist's greed but the gov't. has no choice but to try and alleviate the suffering.