Don't bail out the Wall Street!

Well, I couldn't stand it any longer with the on going bailout bill about to be voted by Congress this week. I wrote a short email to my House of Representative and my 2 Senators. I'd rather see the wall street work it out with their own money (sell their stocks to the point of being worthless, stop dividend payments, to name some of my ideas), rather than tax money. As it is, US is already about 500 Billion in deficit this year plus $30B for BSC, $200B for FNM and FRE, $85 for AIG and $25B for F/GM/Chrysler(?) and $700B bail out bill. How much does U.S. citizen have to be on the hook? Contact your congress people and let them know: no bail out for the fat cats!

Copyright 2008, DannyHSDad, All Rights Reserved.

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Wall Street Bail Out: Oppositions

Here's one Congress person who gets the problems with the TARP (wall street bail out):

Of course, Ron Paul has consistently railed against any government overreach. Here's a commentary out today on CNN: "Commentary: Bailouts will lead to rough economic ride." (Check out Daily Paul for more articles (and a hat tip for the CNN article) and of course my favorite LRC for detailed analysis.)

Copyright 2008, DannyHSDad, All Rights Reserved



Market Craziness

As you may have already heard, the U.S. government decided to intervene in the financial market this week in unprecedented methods: nationalizing AIG, disallowing shorting (of financial companies), U.S. Treasury will backstop money market funds. And will take over bad loans with TARP.

Unfortuntely, none of these actions solve the problems of the economy: job losses, too expensive homes, high inflation and wage stagnation. Mortgage problems will get worse as more people cannot pay them (job loss and/or higher reset rates of all those funny loans). GDII (Great Depression 2) is still on track in my opinion.

With that said, I've gotten out of the market mostly and taken my profits of all shares of: DXD, QID, SH. I still have SRS shares only because it's already in the red (and eventually things will go from bad to worse for real estate, so I'm going to hang on). I may buy some SKF but things are very much up in the air. I would have hung in if the government didn't get involved, but this morning, there is just too much unknown out there (government changing the rules overnight willy nilly). Privatized profits and socialized losses....

Copyright 2008, DannyHSDad, All Rights Reserved.

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