The $700 Billion Bailout

The vote failed. I’m shocked, but it will pass on Thursday because “fear” has now replaced “greed” as the primary emotion consuming the world. The Plunge Protection Team has put fear in the minds of all. In addition, too many politicians are up for re-election. Placing a wrong vote is perceived to be better than casting no vote. Get ready for a temporary stock surge and gold plunge. It was stated this weekend that funding will be phased in and there will be congressional oversight….can we say IRAQ! This is so wrong. Financial markets, when left alone, behave in Darwinian fashion. Irrational exuberance will always correct itself. Poorly managed and unethical companies should be left to fail. Poor management should be removed without golden parachutes. The bailout won’t remove the correction it will only make it worse and last longer. Everyone is pointing the finger, but we ALL participated. Whether it was through the Dotcom orgy, cheap and creative mortgages, credit cards, or 0% financing. It’s a system and the consumer is one part of the equation. John McCain believes that firing the SEC Chairman solves the problem. It’s much larger than that.