Does anyone think Wall St. Folks are ok with Bush in this financial crisis?

[Jacobin]

Okay, it may be a little too early to call it a 'crisis' today...but we have Alan Greenspan warning of a recession yesterday, the housing bubble losing air fast, production down, China's economy slumping, Dickless Cheney galavanting around the globe almost getting his lying ass blown up, and now with the stock market melt down...

Do the moneyed people have a lot of confidence in Bush* to head off a crisis in the financial markets? They know all about IraqNam and Katrina, and the blossoming deficit.

Anyone think they are happy to have him stumble bumbling around to 'fix' their market meltdown?

:rofl:

:rofl:

Anyone think they could be ready to jump on the impeachment band wagon, now that its their precious $$$$$ that's at stake?

[PDJane]

1. There's enough irony

To go around several times.

I suppose what amazes me is that this time, they got precisely what they wanted....and it's not working.

[Sammy Pepys]

2. Eh...is this really a crisis?

I don't think it is. It's a hell of a loss, but the market has been riding a little bit high with no correction for a while. It'll probably toss and turn for the rest of the week and then everyone will be buying again.

[IntravenousDemilo]

3. I'd say a bajillion-gazillion-dollar debt would qualify as a crisis...

...because there's always the threat of the creditors beating down the door.

[Sammy Pepys]

4. But the chances are slim to none...

...that that would happen. It's why bonds have maturity dates.

[Jacobin]

6. But when rates go up

to attract enough foreign investment to issue new debt, businesses and adjustable rate mortgage people starting having severe problems.

I remember the prime rate when it was 15, and those were not pretty times.

[Sammy Pepys]

9. Do you think we're going to see a prime rate of 15% anytime soon?

Probably not. We're still in the midst of coming out of historically low interest rates. Most ARMS are capped and would not get that high, anyway. If you have an ARM that you can't afford, well....sorry. The subprime lending market is going to end up hurting a lot of people who, to be honest, probably shouldn't have been able to get the loans they were offered. Sad but true.

[Jacobin]

11. It wasn't that long ago that the prime got that high

ARMs have caps but commercial loans...those loans that small businesses take out don't have meaningful caps for the most part.

We are in a historically low period right now...historically low. That bears repeating. Its not a given that it will stay that way. In fact all the pressures right now are for rates to go up.

When and if we get to double digit primes is anyone's guess, but this administration is doing everything wrong for stable rates for the long haul

[IntravenousDemilo]

14. Still...

...debt reduction is one of the most important steps towards getting one's financial house in order. That's what financial gurus keep telling us plain folk. Don't put money in your 401K (or RRSP in my country) before paying down your debt, etc etc.

[Sammy Pepys]

15. Government debt does not function the same way as personal debt

And I've never read that a 401(k) should be foresaken for the purposes of paying down debt, especially if that 401(k) has an employer match. Whoever is advocating that sort of practice is probably not a financial guru.

[Jacobin]

5. If not managed properly, it could turn into one

"managed properly" and "Bush*" are mutually exclusive.

That being my point

[Sammy Pepys]

7. Just to clarify...

I'm talking about todays closing numbers on Wall Street. Bush doesn't (thankfully) manage those.

[lapfog_1]

10. I think the fundamentals are against it

The markets like

1) People feeling good about their investments and cash flow

2) Stable foreign business conditions, especially with our large trading partners.

3) Either a balanced federal budget or a ready source of foreign capital to float a deficit.

4) Stable or declining oil prices.

5) Stable or at least predictable middle east.

None of the above 5 market stabilizers or fuels for market growth are there. Peoples primary investments (houses) are declining and people (despite the rhetoric from the right) do NOT feel good about their jobs. The auto makers in particular are doing lousy. China and India are both having growth pangs (not enough infrastructure to sustain present growth, a rapidly deteriorating environment, rising labor costs, not enough raw materials, etc, etc... not to mention having to complete for energy imports, thereby increasing the cost of those imports). We have no plan currently to curtail spending (ending the war in Iraq for starters or increasing taxes to pay for our deficits... only a large unsustainable growth can start to pay our federal deficit down, a growth that just isn't going to materialize... so who is going to float the US debt? China? Europe? the rest of Asia? And yet those same people can't let it (and us) sink... but they can't keep us up either... catch 22 with a bunch of spinning plates on sticks. Oil prices are not going to decline or stabilize, especially with deadeye Dick running around telling everyone that the US will use whatever means required to stop Iran from getting nukes. (See, Wall Street was saying the selloff was investors reacting to the news that Cheney was attacked in Afghanistan... I wonder if Wall Street was reacting to the fact that Cheney was attacked and survived in Afghanistan).

[no_hypocrisy]

8. Depends on how much money they lose irreparably . . . n/t

[Cobalt Violet]

12. Is something going on on wall St.?

Are they jumping out of windows yet?

[Cha]

13. If they were as smart as they think

they are they would have banded to get rid of his asshole a long time ago.