Monday, September 29, 2008
Asian Markets in Free Fall
In my previous post I mentioned that the U.S. equity market's lost value of nearly 2X the bail out package. Let us say, for arguments sake, that it is $1.4 Trillion, OK. Let us also assume that investors realize the loss this year... at our current top marginal tax bracket of 35% or so X $1.4 T... tax revenues could decline $500 Billion? Way to go, House Republicans.
I forgot to mention that in a few hours the Asian markets (you know, those guys that lend us the money we need to fund things like our SOCIAL PROGRAMS) would be open and would pass judgment on the today's vote rejecting liquidity for the banking system by the U.S. Congress. So far, our trading partners are less than impressed, as Asian markets are having their worst day in 21 YEARS as I write this.
The world wide decline in equity values for the 24 hour period subsequent to the house vote might be 4X or even 5X the $700 Billion package.
If you were looking for politically correct/influenced analysis - this Blog ain't for you.
The House Republican's aberrant behavior today was nothing short of reckless. They need remedial classes in economics and how the U.S. fractional reserve banking system operates, but I don't think they would pass the final exam. What a bunch of Doinks!
Mentatt (at) yahoo (dot) com
Posted by The Short Story Man at 6:03 PM