September 24, 2008

Market Review and Commentary for September 24, 2008

DISCLAIMER: These are trades I am doing and may not be right for
you. Use your own Due Diligence when making financial decisions of
your own choosing. This is NOT a recommendation of any security.
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Congress debates the importance and need for the $700 Billion bail out of the financial institutions.

During the hearings today on this bail out I heard one Congresswoman complain that this came at the end of the week when Congress is about to go on vacation…

Is she kidding??? This is a national emergency! And she’s worried about a vacation???

I heard other Congressmen state that $150 Billion would be enough to ‘get started’…

Another one complained that it’s a bail out of “Wall Street, not “Main Street” and his constituants are not happy about it.

The fact that the destruction of financial markets would ruin the economy, jobs, credit and further kill the housing market if nothing is done seems to be less of a concern than the ‘timing’ of this issue.

I got the feeling that many in Congress didn’t even know the right questions to ask. The financial system has gotten so complex that few in Congress understand it.

The President is speaking ont he ecomonomy at 9PM Eastern time tonight. If he deflects the blame, fails to face this straight-on or states “it’s not as bad as it appears” then ther will be hell to pay on the markets.

He’ll of course push for the passage of this bail out… Democrats do not wnat this problem solved by a Republican party and, since they do not see the urgency anyway, could stall this package from being passed so that that they can influence the election in Obama’s favor.

Bailing out Wall Street to them is the same as bailing out the Republicans who they blame as having created this problem.

It would amaze me if this truly was bi-partisan… and it passed.

Occasionally miracles do happen though.

{There’s no video today – I’m popping the popcorn and watching the President. It will be the best entertainment on TV tonight}

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