It’s official, according to the New York Times, the bailout proposition has been rejected by the House of Representatives. The Dow Jones just plunged more than 400 points and America is standing up for itself as the bastion of free market economics!
According to the New York Times, “supporters of the bailout proposal had argued that it was necessary to avoid a collapse of the economic system, a calamity that would drag down not just Wall Street investment houses but possibly the savings and portfolios of millions of Americans. Opponents said the bill was cobbled together in too much haste and might amount to throwing good money from taxpayers after bad investments from Wall Street gamblers.”
Ironically though most Californian democrats have been up in arms about the Fed bailing out the financial industry with taxpayer dollars, the vote to decline it has been purely republican! We are back to the essences of what the fiscal conservatives actually stand for. Even the bailout plan promised relief in the short term, its sustainability over the long term has been seriously questioned by many. As House Representative, Steny Hoyer says, “When it comes to America’s economy, none of us is an island.” The last thing we need is more of a domino effect on the economy.
Wachovia has just managed to save itself from the fiasco by selling tis assets to Citigroup. But as usual, the word on Wall Street is ‘Who’s next?” These last few days there has been speculation that Goldman Sachs would be severely impacted….negatively that is…if the bailout plan did not go through. Don’t you think it is interesting then ‘King Henry’ Paulsen was adamantly pushing the plan….after all he is Goldman Sachs alum!
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