Wall street takes major hit

[metsfan]

http://money.cnn.com/2008/09/29/markets/markets_newyork/index.htm?cnn=yes

 

 

 

This was a dark day for the markets including in europe. Asian markets open in a few hours.

 

- A

[Coolbreezing]

Well, .It is what it is. Congress didn’t approve of it because many citizens disapproved of the $ 7000 Billion bailout. I guest congress is finally listening to the American people. Many people believed that they should let the market roll …what ever happen ….happen. The Fed proposed the bailout plan as an attempt to prevent market failure because when this country has the flu virus other countries experience a cold. Foreigners invest heavily in this country; I certainly understand why the domino effect. Anyhow, letting the market roll as it is now will create more job lost. Now we just witnessed how some banks are consolidating, merging to become one as an attempt to prevent major fall out. Next, you’re going to see job lost and downsizing, doing more with less is what’s going to happen. They must be consequences for all those buying and selling out that are happening. If Joe put together with John and bought 5 apples from me to split with their families what are the chances that John and Joe may not have enough to give their friends. It's all depends on their purchasing power and market availability. If only 5 apples are available when they use to consume 10 it may not be enough to share among friends. Well, that’s what some investors are experiencing, some investors will gain in the process some will lose, it will all depends on how deep their pockets are.

 

The other concern about the $7000 bailout relates to debt. Since we’re already in debt, it’s obvious that we don’t have $ 7000 billion to lend to any corporation. Therefore, if we were to agree on the bailout, we would have to borrow this money from some where which would berry us in debt even more. Now the question is who would lend us that money? Where would it come from and if it is China that lends it to us, under what condition would they do it? It’s logical to admit if I borrow money from Joe with a promise to pay him back, it’s relevant for him to ask me for a back up security incase I can’t deliver on my promise. What is that security is what us tax payers should want to know. I’m not totally in favor of congress decision because they’re consequences accompanying it but since they’re too much questions left in the open, I can understand why they skeptic about it.