Monday, September 29, 2008

Cut your nose off to spite your face!

Well, the vote is in.  The liquidity injection has been rejected.  

The decline in the S&P 500 ALONE, not to mention the impacts on the bond and real estate markets, are, as I write this, is well over $800 BILLION in value.  Whatever Congress was trying to prove, they just proved that, as usual, they do more harm than good.

My best guess is that the Federal Reserve and the U.S. Treasury will try to do a temporary end run around Congress.

In the meantime:  No bank is safe from failure.  Do not keep more than $100k in ANY bank for any reason.

BTW... I am STUNNED. I fully expected the bill to pass.  Just goes to show you...

Mentatt (at) yahoo (d0t)com


Anonymous said...

Well I'm glad they didn't pass it. Either we will go down in flames and most likely take the government with it. Or it will correct itself.

We shall now see. But the conversion to a communist society has been rejected.

The people would rather be poor and free then middle class and slaves.

Bureaucrat said...

The House did the right thing, for once, for now. The future of America -- the children -- were the first consideration, finally. Mish was right. Rush was right. Jeffers was wrong (but he changes quickly). I was ... mostly right. :) The bad stuff is/was gonna happen eventually. They'll try to reintroduce it, I'm sure.

Anonymous said...

It is amazing to see Congress vote according to the will of the people for a change.

Just wait until after the election! Congress was terrified of an accountability moment in November. (Popular support for voting yes was nil) Voters can remember being robbed for two months, but can never remember what happened six months ago...

So expect Paulson to try to save his buddies again come December.

Anonymous said...

Nitwits like Pelosi or Schumer should not be making decisions of such import.

And I understand that congress did not air any testimony from economists???

And I would not be so quick to rule Jeffers wrong ie the consequences of all this. We will see how fast JoeSixPack pays attention if his entire savings go POOF!

Anonymous said...

It was voted down today for political reasons. It caused a major decline of the stock market (which they knew it would) which they believe will cause many of those against the bill today to change their mind. So when they do pass it next week, they will suffer less political fallout from doing so.

This sucker isn't over yet. They needed to make the masses skirm first.