Dow plummets record 777 as financial rescue fails - Yahoo! News
Retrieved 29 September 2008 at 2309 from:
http://news.yahoo.com/s/ap/20080930/ap_on_bi_st_ma_re/wall_street
I'm going to keep this somewhat short and assume that my readers are capable of reading the article on their own...
Starting with some quotes from Gordon Charlop of Rosenblatt Securities:
Seriously??? Where do I start? Wall Street is uncomfortable with uncertainty... If you are afraid of risk or losing your investment - you should NOT be investing in the market. I know this seems like a blinding flash of the obvious - some businesses FAIL! When you purchase a stock, you are basically betting that that company will succeed and you will increase your net worth... no uncertainty there. Second: "Congress isn't willing to do their part" - someone please tell me when it became the responsibility of the government to bailout a business sector in a CAPITALIST FREE MARKET based economy? I will not even continue without mentioning that this industry (namely investment banking) has lobbied extensively for decreased governmental oversight and regulation. If the banking industry learned anything from the S&L failures of the 1980s it is that they can make bad choices, teeter on the edge of failure and the Fed will be their knight in shining armor coming to bail them out.
Another problem involves the ridiculous amount of interconnectedness of all of these institutions combined with the fact that none of them were far-sighted enough to even fathom the possibility of losing money.
Please see the article below regarding AIG's failure:
Retrieved 29 September 2008 at 2320 from:
http://www.nytimes.com/2008/09/28/business/28melt.html?_r=1&scp=1&sq=AIG%20blind%20eye%2028%20september&st=cse&oref=slogin
I would like to point out the opening quotation preceding the article by former AIG executive Joseph J. Cassano:
How could you not even plan for the eventuality that insuring unsecured loans could result in the potential for a loss??? This man ran a small office in London, England that is for most intents and purposes the reason AIG is failing, and he lives comfortably with relative impunity for his actions that lead to this collapse...
Before closing - here is a link to the Bill as voted on:
http://graphics8.nytimes.com/packages/pdf/business/20080928bailout_text.pdf
In closing: on to the failure of the Bill to pass - I'm still reeling from the finger-pointing and "reasons" given so far today of why this did not pass... Once more information comes available and I can digest it, I will post again.
Retrieved 29 September 2008 at 2309 from:
http://news.yahoo.com/s/ap/20080930/ap_on_bi_st_ma_re/wall_street
I'm going to keep this somewhat short and assume that my readers are capable of reading the article on their own...
Starting with some quotes from Gordon Charlop of Rosenblatt Securities:
"How could this have happened? Is there such a disconnect on Capitol
Hill? This becomes a problem because Wall Street is very uncomfortable
with uncertainty," said Gordon Charlop, managing director with
Rosenblatt Securities."The bailout not going through sends a signal that Congress isn't willing to do their part," he added.
Seriously??? Where do I start? Wall Street is uncomfortable with uncertainty... If you are afraid of risk or losing your investment - you should NOT be investing in the market. I know this seems like a blinding flash of the obvious - some businesses FAIL! When you purchase a stock, you are basically betting that that company will succeed and you will increase your net worth... no uncertainty there. Second: "Congress isn't willing to do their part" - someone please tell me when it became the responsibility of the government to bailout a business sector in a CAPITALIST FREE MARKET based economy? I will not even continue without mentioning that this industry (namely investment banking) has lobbied extensively for decreased governmental oversight and regulation. If the banking industry learned anything from the S&L failures of the 1980s it is that they can make bad choices, teeter on the edge of failure and the Fed will be their knight in shining armor coming to bail them out.
Another problem involves the ridiculous amount of interconnectedness of all of these institutions combined with the fact that none of them were far-sighted enough to even fathom the possibility of losing money.
Please see the article below regarding AIG's failure:
Retrieved 29 September 2008 at 2320 from:
http://www.nytimes.com/2008/09/28/business/28melt.html?_r=1&scp=1&sq=AIG%20blind%20eye%2028%20september&st=cse&oref=slogin
I would like to point out the opening quotation preceding the article by former AIG executive Joseph J. Cassano:
“It is hard for us, without being flippant, to
even see a scenario within any kind of realm of reason that would see
us losing one dollar in any of those transactions.”
How could you not even plan for the eventuality that insuring unsecured loans could result in the potential for a loss??? This man ran a small office in London, England that is for most intents and purposes the reason AIG is failing, and he lives comfortably with relative impunity for his actions that lead to this collapse...
Before closing - here is a link to the Bill as voted on:
http://graphics8.nytimes.com/packages/pdf/business/20080928bailout_text.pdf
In closing: on to the failure of the Bill to pass - I'm still reeling from the finger-pointing and "reasons" given so far today of why this did not pass... Once more information comes available and I can digest it, I will post again.
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