Epiphanyblog

All about ideas…

OVER $1 TRILLION DOWN THE TUBES

with one comment

By the time the closing bell rang this afternoon, the DJIA had lost almost 800 points, the S&P lost 107 points, and the NASDAQ lost nearly 200 points. In real dollars, that means that Americans have lost over a trillion dollars today alone. It’s the largest market drop in twenty years.

Small businesses are reporting the inability to meet payrolls and pay their bills as credit lines dry up. Even major corporations such as Caterpillar and McDonalds are reporting difficulties in obtaining credit. CNBC reported: capping three hours of debate, House Majority Leader Steny Hoyer of Maryland had warned lawmakers that the cost of inaction would be an economic calamity beyond Wall Street.

“A meltdown would begin, it is true, on a few square miles of Manhattan, but before it was over, all of us know, no city or town in America would be untouched,” Hoyer said.

Today’s market plunge is a enormous loss for institutional investors who manage pension and retirement funds. That kind of loss could wipe out a person’s retirement funds.

Brazil suspended trading early today as a result of the steep market drop on report of the House having failed to pass the financial recovery bill.

Asian markets opened much lower and are set to take a steep nose dive. Euro shares hit lowest close in 3-1/2 years. All this on news of the failure of the financial recovery bill to pass the House.

Tomorrow and Wednesday will bring further bad news as the world markets grow more shaky and nervous. More banks are about to close their doors as overnight bank to bank loans fail to occur on fears that repayment won’t happen.

If the credit market fears are not quickly calmed by injecting liquidity into the system to stabilize the credit market, people will begin to see huge increases in unemployment, their stock and retirement portfolios wiped out, and the inability to access funds.

Listening to the House representatives today, I couldn’t help thinking that far too many of them were voting against the bill for no other reason that ideology. It was against their political philosophy.

So what if the economy tanked. So what if unemployment rose to 15 or 20%. So what if small businesses en masse went out of business. So what if mid and large sized companies contracted on loss of sales. So what if pensions were wiped out and more homes repossessed. So what if more people were forced into bankruptcy.

Their political ideology was more important.

What a bunch of bloody idiots! Having a set of ideals is one thing. But when they bump up against reality, reality wins every time. Pretending reality doesn’t exist is like saying the the sun is green. It’s stupid.

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Written by Valerie Curl

September 30, 2008 at 1:31 AM

One Response

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  1. It’s crooked on both sides of the aisle, the house and senate. They’ll pass something soon, and Wall Street will zip up and move on…

    http://rjjrdq.wordpress.com/2008/09/29/wallstreet-turns-the-screws-on-america/

    rjjrdq

    September 30, 2008 at 1:59 AM


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