Monday, October 13, 2008

Financial Crisis or Not?

With todays nearly 1000 point gain in the stock market, one must be left wondering where the crisis went. Wall Street leached out calling for anything, anything except what was passed by the senate, and congress. They really, truly wanted an unregulated pot of tax payer money to buy up their toxic assets. However, senators and congress people fearing for their jobs decided to pass legislation which would hold these foul institutions responsible.
So, why didn't the wall street bailout bring the markets up? Well, to know that you would have to understand why Paulson, and Bush wanted an unregulated pot of tax payer money. I assume they were going to pay full price for toxic assets, and no security would be offered. Sure, under that plan, wall street would have had an immediate bounce, maybe it would have made a new high!
The 250 billion in cash to be infused into banks is supposed to but preferred stock. We will see what actually happens.

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