-- The largest government intervention since the Great Depression, the $700 billion bailout bill, was voted down in congress. 205 Yes - 228 No -- Republicans overwhelmingly voted no, while most Democrats voted yes. This is unprecedented. The treasury secretary, the president, the speaker, and the chairman of the senate finance committee all supported the bill. This is a popular uprising and the awakening of people who are finally realizing what is happening.
-- The Fed takes unprecedented action to increase dollar holdings worldwide in order to prevent a full collapse of the currency
-- Gold rises to $915 an ounce. Gold coin sales halted after retail rush
-- S&P plunges 7.2%, most since Black Monday Oct. 26, 1987
The No vote today is a victory for capitalism and democracy in America. This alone should give reason for hope. Let the bankers reap what they sow. Let the them suffer for their greed and ignorance.If the bill would have succeeded, they would be walking away with our money. $700,000,000,000 for 138 million US tax payers, is over $5,000/person.
The bailout wouldn't have solved the structural flaws. It wouldn't have cured the irredeemable ilk that glue the present financial system in place.
It would have only delayed the inevitable.
Total systemic financial meltdown.
"It is no surprise as financial institutions in the US and around advanced economies are going bust: in the US the latest victims were WaMu (the largest US S&L) and today Wachovia (the sixth largest US bank); in the UK after Northern Rock and the acquisition of HBOS by Lloyds TSB you now have the bust and rescue of B&B; in Belgium you had Fortis going bust and being rescued over the weekend; in German HRE, a major financial institution is also near bust and in need of a government rescue. So this is not just a US financial crisis; it is a global financial crisis hitting institutions in the US, UK, Eurozone and other advanced economies (Iceland, Australia, New Zealand, Canada etc.)." - Nouriel Roubini
The dominos are just beginning to fall. The fight for manioulated markets is not yet over, but these are signs of a natural reordering of a skewed world economic and political system. The systems of checks and balances are finally striking back full swing, awakening our need to rethink our most basic assumptions about life. About the role money.
If we want to build a new financial monetary system, we have to let the old defunct system destroy itself. We will all feel the pain, but we will all walk away with lessons learned.
Great...
ReplyDeleteOk but what to do?
What should we do or what should the politicians do?
ReplyDeleteWe should learn to live within our means. We should see the international monetary and financial system for what it is. An attempt by western countries to exploit the periphery/developing countries in order to retain the wealth and power we have so been accustomed to. And a system structured and run in a a way through which the rich will get richer and the poor get poorer. This is what the bailout plan will prolong. This is what we have stand-up for in whatever way we can. Whether by educating, or protesting, or just through sending a letter to a congressman, how about not buying that new gas guzzling SUV, or by just voting for those opposing the system.
We need to be disgusted with the apathy and feeling of hopelessness that governs many of our lives and do whatever little we can to contribute. That is the only way.
That is the only way to empower a politician, or a group of them, that will have balls and ideals to attempt to change the current system. Our system of democracy showed yesterday that ideals are still capable of surprising the money monger power holders. I still believe they will find a way to push through this bill before Thursday, but I can't help feeling some semblance of hope...