IN YOUR FACE BANKSTERS!! HAHA!
** Ahem **
According to the Wall Street Journal:
WASHINGTON -- The House of Representatives delivered a stunning defeat to legislation designed to rescue the nation's troubled financial system, sweeping aside a call from President Bush to "send a strong signal" of confidence to markets at home and abroad.
House Minority Whip Roy Blunt (R., Mo.) spoke to reporters after the House voted to defeat the financial bailout package.
The 228-205 vote Monday exposed deep unease among rank-and-file lawmakers in both parties with what would be an unprecedented intervention in the private sector. The vote came as turmoil in financial markets widened, prompting the Federal Reserve to inject new capital into credit markets and forcing the government-arranged sale of Wachovia Corp. to Citigroup.
Monday, the Dow Jones Industrial Average plummeted 777.68 points, its biggest one-day drop in history. It ended down 7% at 10365.45, down 9.3% since crisis erupted a few weeks ago on Wall Street following the meltdown of Lehman Brothers Holdings. All 30 of the blue-chip indicator's components fell Monday.
The Bush-backed package now faces an uncertain future, though party leaders on both sides of the aisle are sure to consider revising the initiative, which Mr. Bush said Monday is needed to "keep the crisis in our financial system from spreading throughout our economy."
After the vote, House Minority Leader John Boehner (R., Ohio) said there would be an effort to bring back another bill, with further changes. "We've got to find a true middle ground," he said. "We need everybody to calm down and relax and get back to work."
There's a lot to say here, and I will leave the bulk of the commenting to the professionals.
But here's my One Dolla and Fitty cent...
A) It's official... the U.S. Stock Market has crashed. And that's not a bad thing... if you were prepared for it.
Me myself, I've been out of the broad stock market indexes since January 01. After taking profits on my oil and precious metals positions in late summer '08, I've been cruising along in cash, money market accounts, and physical precious metals ever since.
(If you haven't done so already, please visit a qualified financial adviser right now. And please don't take my personal investing methods as gospel either. See an adviser... today!)
I don't see today's market action as negative, simply because I don't believe that the Stock Market is a reliable indicator of the true economic condition of the country. Indeed, I believe that the Dow Jones and other indexes have a long way to fall before it accurately prices in a simple fact of American life... the consumers that make up 70% of the U.S. economy are broke as a muthafukin' joke!
Because of the house of cards that our economy is based on , the Stock Market is a dangerous game that is controlled by a select few power players, and has turned violently on many a banker, hedge fund manager, and individual investor, to their financial destruction.
When the stock market goes up, most people think that means that prosperity is coming their way. I strongly disagree, at the moment. If and when the vast majority of companies listed on American stock exchanges are solid companies, with solid earnings, a solid customer base, strong balance sheets, producing real goods with real value, and possess a sustainable competitive advantage over their competitors in global markets, then I will change my view.
But so long as our economy is based on Money as Debt, Credit Bubbles, and piss poor accounting methods, I will remain skeptical that the fortunes of the Average Joe are based upon the ups and downs Wall Street.
When the country as whole recognizes that economic prosperity begins on Main Street, and trickles up to the financial institutions and the global marketplace, then we will focus our efforts on producing goods and services that provide unmatched value on the world stage.
Once we as a people do the things that contribute to genuine wealth, peace, and prosperity, such as avoiding the costs and consequences of family destruction, promoting institutions that contribute to increased human wealth and well-being such as marriage, religion, and family instead of discouraging them, and developing human and other capital, by means of quality education, affordable health care, a genuine free market economy, and a robust system of Free Enterprise (as opposed to our current fascist business model), and govern according to the principles of the Rule of Law and Natural Rights, administered under a Constitutional Republican framework, then this nation will once again be the richest, the wealthiest, and the happiest nation to ever exist on God's green earth.
Only when Finance and Banking returns to its proper place as a SUPPORT function, instead of a OPERATING function (which will happen once the Debt Bubble finishes its ongoing implosion) will there be any hope of recovery, and NOT BEFORE.
B) This Market Crash might have more to it than meets the eye.
This is only speculation on my part until the data proves otherwise. But I suspect that the record free-fall of the market was, in part, driven by:
1) Lack of Plunge Protection Team support, deliberately withheld in order to put pressure on members of Congress to support future bailout efforts, which are forthcoming.
Speaking of Congressmen, please be sure to go here to see how your Representative voted, and listen to the words of Dr. Ron Paul as he breaks it all down.
Please note that the Fed pumped billions of dollars into the marketplace in spite of today's Congressional defeat. Wouldn't you agree that its time to End the Fed??
If you are of the same mind as me, please contact your elected officials and urge them to support Dr. Paul's abolish-the-Fed bill located here. There will be no true economic recovery, nor will there be a Constitutional Republic unless three things happen:
Gold (or silver) backed currency issued and managed by the United States Congress or the Treasury, abolishment of the individual Federal Income Tax, and the repeal of the Federal Reserve Act.
2) Lack of stock market buying on the part of short sellers.
Remember that short selling has been banned, and since there were no shorts buying stocks to participate in today's bloodbath, the markets were able to plunge to new lows. Methinks that some of today's losses would have been mitigated by active short-sellers scrambling about to purchase stocks to short.
Now, I could be dead wrong. But I will be looking for evidence to support my conjecture... as it makes a whole lotta sense.
C) This is a temporary victory.
The architects of the Fascist business model don't know how to take NO for an answer. I suspect that the bailout bill will be resurrected in the coming days. And only time will tell if the upcoming economic chaos (some of it genuine, some of it fabricated) will be enough to scare the Sheeple into supporting this tragically flawed legislation.
D) Peak U.S. influence has arrived.
According to Mish Shedlock:
...Peak US Influence
The US can no longer tell the world what to do and when. The sooner Congress, the next president, and even US citizens figure this out, the better off we will be. We need to start living within our means. Sadly, neither McCain nor Obama has figured this out as evidenced but the pathetic debate on economic issues...
Check out the entire piece. It's worth the read.
The moral of the story is that the American Empire is on the wane... and along with it, the fortunes of Political Feminism.
As I've posted previously, cheap money and credit are the root of all evil, and more specifically, the enablers of Tyrannical government and Tyrannical Political Feminism.
Expect both to shrink into insignificance, over the course of time.
E) What's really going on??
That's the question of the hour isn't it? And only one branch of economics has the answers.
Please visit the Mises Institute's Bailout Reader, feel free to stop by the Campaign For Liberty blog, and don't forget to direct your browsers to Goldseek.com.
Stick with these sources of info, and you'll be aiight.
No matter what happens, these are interesting times we live in...