Hey all: As many of you know, the House of Representatives passed the $700 billion financial bill designed to prop up the economy. It's ironic that the stock market proceeded to lose over 100 points on the day. It makes one wonder if the bailout hadn't passed, would the results have been worse?
I think what this shows us is that economic recovery is going to take a while. Warren Buffett was quoted as saying the bailout was needed but positive results wouldn't be felt right away. He's a wise old sage. I still expect better news next year at some point. We need to work through higher unemployment, lower factory orders and tighter credit before the economy will improve.
On another related matter, I was reading an article from the New York Times today. The article was dated September 30, 1999 and talked about how Fannie Mae and Freddy Mac wanted to open up the market to more mortgages; meaning allowing less-than-perfect borrowers (think subprime) to buy a house with little or no money down. Almost ten years later, the chickens are coming home to roost!
I wish you all success as we move forward. We're all aware there are always opportunities out there. It's just a matter of keeping our heads and chins up! Have a great day!
Paul
Paul McFadden
Hi Paul, the disturbing thing it was up over 200 points before it passed. Hmmmmm. Do you think they know something we don't?
Bill: I believe they knew all along that their situation (financial institutions) was not great and not likely to improve anytime soon. I still expect quite a few bank failures before we can start to recover. That's the last shoe to drop! Take care.
Paul
Bill,
the words that sum up this bogus rescue bill are; IT SUCKS!!!
I keep clicking my crocs (I don't wear heels) together and chanting, "There's no place like Capitalism, There's no plpace like Capitalism!" but nothing happens. Why? It is a fairy tale to believe in the Great and Wonderful Oz, jus tlike it is methdone to a heroin addict to believe we are going to be helped with this slush fund.
I have a voter guide at my blog: www.activerain.com/lousellsco and recommend you vote no vor everyone who voted yes, come election time.
Lou: Truer words have never been spoken. The question is there a better system? I think not. The interesting thing is this bill grew from 3 pages to over 400. Does that mean that our lawmakers didn't feel there was enough for the special interests in the original bill? Is that why they voted it down? I think the public was under the impression that maybe the dollar size of the bill would shrink. Yet it's still $700 billion and who knows if that is enough? We'll see how this one plays out. I believe the market is headed lower (below 10,000) as the fundamentals just don't make sense. Eventually we'll recover but it's going to take a while.
READ THE ENTIRE BILL - i think everyone should read it, to understand what they have approved.
Paul, now the question is if, when and how much the bailout is actually going to work. My position?.....businss as usual and work like a dog and help my clients close their loans!
Have a great weekend!
Bo
Carlos: If I had time, I would. It's galling to me that what began as a 3 page bill ended up as a 450 page bill with a bunch of add-ons that didn't relate to what the intention was. Just my 2 cents but it honestly makes you wonder about our lawmakers and what their stake in this is. Have a nice weekend!
Bo: I agree with you. Keeping your head down in this market is what's needed!
Paul