Thursday, October 9, 2008

Stock Market Blues

It has been a frustrating month watching the stock market sink due to the massive selloffs of investors spooked by the U.S. banking industry credit situation. I can't even bear to look at my 401K balance right now. At what point will the selling stop? Right now, the Dow Jones in the low 9000 range. What will be even worse is if the market sinks another 500-800 points, because then the corporate layoffs will begin. Once the layoffs begin, the negative economic growth will really kick in.

The stories of a $400,000 party at AIG after their bailout and Lehman executives receiving large bonuses while the company was going down the toilet are outrageous. The lack of ethics by executives of both firms is appalling and frankly, puts them in the same category as scorned Enron chief Kenneth Lay.

The $700,000 bailout sure is working great, isn't it? NOT! The market has tanked since last Friday when an agreement was announced. The idea of a bailout working was dubious at best, and so far, has not done anything to stabilize the free falling markets.

We are in tough times right now and they could get worse.

1 comment:

Nick McNulty said...

Socialism, in the form of the new Frankie Mac "entitlement to a house" is the root cause of this mess, it was a powderkeg waiting for a spark. That spark was the quadrennial media assault on the economy.

I still don't get how that media assault works; Democrats cause financial ruin in our nation whenever they are in charge, yet they enjoy a public school, union-educated perception amongst the American people as being strong on the economy. Based upon what?

Compare Newt Gingrich's congress and our economy to Nancy Pelosi's congress and our economy. Alexander Hamilton called Congress the purse of the community, the President the sword. Seems to me the sword is in a lot better shape today than the purse, the converse of which was true in 1996.

It's the Democrats, stupid.