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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (132129)	9/29/2008 10:30:44 PM
From: E. Charters	2 Recommendations Read Replies (5) \| Respond to of 312299

Cheering the fail of bail may be premature as credit evaporates. Like cards get cancelled, more loans get called, etc.. I am not sure that dominoes will not start to fall and fall. The fact is the moral outrage is misplaced. The credit institutions that need the bail out may have erred but there is no replacement for their part in US fiscal enterprise. If they fold, so goes a lot of business with it. If AIG had folded then most insurance contracts and credit cards would be worthless. It was the fiscal austerity in the 1930's, not the crash that caused the damage. The smoot hawley tariff bill and Hoover's fiscal "responsibility" caused the depression, not the financial crash of wall street. The bail fail is the voter's version of the smoot hawley. What has happened here is that the investment banks and merchant banks have created a credit crisis due to their unrestricted trade in instruments of monetary credit. It was this bypass of the Glass Steagall act which jumped thru regulatory hoops and caused the credit bubble in the first place. EC:<-}