Monday, September 29, 2008

$700 Billion dollar package, that faded away.

The failure of the $700 Billion dollar package has begun to annoy me. Not because it has failed, I have no problem with that. We elect officials who are supposed to speak for the people and they vote their conscious and I am OK with that. What annoys me is the reasons that I am hearing for the failure.

1. That there were enough votes to get the bill passed but when the Republicans heard Pelosi's speech (blaming Bush for this mess), they took and about face and voted no.

2. That some elected officials could not vote for the package because it bails out the rich on wall street and hurts the Americans on "Main Street".

The second point is one that I cannot understand. Take a look at what happened today with stocks. Do you think the guy on "Main Street" is happy with this? Their net worth dropped today, either by way of a 401k, pension plan or equity in a home. They are losers. How about the small business that cannot get a loan to stock inventory, stream line shipping etc. etc. This weekend I was getting a haircut and the owner of the shop was explaining to me that he was paying 29% on his credit cards (he was asking if I could get him a better rate at my bank). The balances were so high because he could not get a business loan to fix up his barber shop and it needed to be upgraded. Now he says it is impossible to get out from under and is considering filing bankruptcy. This is the type of guy on "Main Street" that could (notice I said could) benefit from the bailout package. The package once approved would help (considerable) free up cash and enable banks to lend to credit worthy individuals and small businesses. Rather the congressmen today, protecting the little guy actually (in my opinion) hurt him.

As for the first point, I believe those 12 congressmen (if what I heard was true) put politics in front of what is best for the American people. Today's showing makes me want to vote out ALL incumbents come November.

Did anyone see Hank Paulson gives his briefing? He seemed to be shaking, probable in disbelief, trying to figure out what he could possible do to help this situation.

All comments would be appreciated

Good Luck and Good Currency Trading.



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