You are currently browsing the tag archive for the ‘Finance’ tag.

The New York Post is reporting that nearly 3,000 people showed up for the Chelsea Job Fair yesterday (Wednesday October 15th). They compared it to a bread line. Remember when I said the world-wide intervention by governments to save the banks would at least keep us out of bread lines? <Gulp.>

Advertisements

It looks like the bank rescue plan is going to work! Yay! Happy days are here again! This was the shortest Great Depression on record, lasting only three days, from Black Friday (October 10th, 2008) to Happy Mondays! (October 13th, 2008). After the DJIA lost over 50% of its value from its peak over the summer, it gained back 11% on Monday, and if the DJIA follows other world wide indexes today it stands to be back at 14,000 by Christmas.

Some Debby Downers are already saying this looks like a classic “Bear Market Bounce”. They say that — markets be damned — until Americans feel enough pain to make them give up their profligate, spendthrift ways the same mindset that brought us the problem will create new and unforseen problems.

But one thing is for sure, government intervention in global capital has never been this big in the entire history of the world. Whatever the new problems are, they won’t look like your grandparents’ problems. There probably won’t be bread lines in Manhattan (thank God!), nor will there be runs on the banks as frightened citizens desperately try to get greenbacks out of battered ATMs.

I’m gonna play Nostradamus here, and predict that the new problems will have less to do with the money supply (a problem the government has found an elegant solution for) and more to do with inflation. Bad debts are inescapable, as is the hangover they produce. It’s just a feature of overproduction and speculation. They must still work their way through global economies. But people won’t lose their cash. Instead the brand new, guaranteed bills governments all over the world are creating to make sure there is still money in your purse will loose their value when it becomes apparent that they aren’t redeemable for real work. (That’s what happens when people default on their debts — you can’t get the work they promised out of them.) How they deal with 2009’s inflation will be something to see.

Alabama Congressman Richard Shelby

Alabama Congressman Richard Shelby

They won’t be able to just admit they were wrong.

They won’t be able to admit that took the idea of a self-regulating free market on faith. Or that a misplaced faith in their intellectual powers was all they ever had. They won’t be able to admit that reality is more complex than their simple, moralistic ideologies can handle. And yet it looks like the Freemarket Fundamentalists might actually score some political points from the financial crisis.

Who is responsible for the credit crisis that is ripping through American and foreign financial markets like a spasms through an epileptic? It’s like asking who is responsible for the torture at Gitmo or Abu Ghraib. If you’re still one of the faithful, it was all the work of a few bad apples and not a massive systemic failure that is bound to happen cyclicly until the end of time — or until real reforms are implemented. But conservatives don’t believe in reform. They believe in human nature. They believe the eschaton is coming. They know Evil will be with us until it’s final, apocalyptic showdown with Good.

In the meantime, Democrats only got about 55% of their due political realigment out of this once-in-a-lifetime political opportunity.

get the rest here…

Hello again friends. Your humble political observateur here. I busted out my lab equipment again so’s I can drop some science on you. Political science that is.

McCain and Co. was hoping an August surprise with Mrs. Sarah Palin would put momentum in their full court press. And I’ll bet you Cheney was (maybe still is) planning an October surprise wherein Iran “fires” on US warships in the Gulf and we respond by righteously invading their country.

Unfortunately for the fantasy-based community, reality, courtesy of the Dow Jones Industrial Average, has given us a September surprise to shake up the presidential contest. Yesterday the Dow components lost almost 450 points or 4%,┬áin one day. The loss since the close on 9/11 last week is over EIGHT HUNDRED POINTS (800 pts.). You read that right. EIGHT HUNDRED POINTS. That’s a lot — just over 7% of it’s value in three days. That means people who know a thing or two about which way the wind is blowing are scared out of their wits and are heading for the exits. What color is your parachute?

for more fun, click here!