1) The first thing to realize is that the single biggest issue in the financial system is confidence in the system itself. I think we can all agree on that.
Spoken like a true banker;)
-Maybe if the banking system was sound then there would be more confidence.
-Or if congress and the fed did not say we are on the verge of an economic meltdown
-Or if banks were not spontaneously combusting in front of our eyes
-Or if every major bank was not insolvent
-Or if maybe if anything resembling honesty came out of any officials mouth.
These conditions and many others do not instill confidence. Maybe besides short selling they should ban pessimism and lack of confidence.
Lying to instill confidence only works for so long. Cramer and the CEO of Bear Stearns gave the ultimate confidence booster two days before it went BK.
This whole bailout is just further looting of the treasury for the made men, not unlike all those CEOs that left with golden parachutes after they ran their companies into the ground. This time it’s the whole country.
Treasury Secretary Henry Paulson says the nation’s credit markets are very fragile and still frozen and Congress must move quickly to pass a $700 billion bailout package for financial firms.
Translation: Gimme your money before you look at the details of the proposal and see what a bad deal you are getting.
