Tuesday, September 16, 2008

The Day After the Market Crashed

The cleansing has begun, and those fiscal organization living on the edge are now facing the realities of this unstable economy. The GOP candidate for President can try to claim the fundamentals of the economy are strong, but one would have to admit the Stock market is a prime fundamental and, after yesterday, anyone whose sky is blue knows the stock market is at its most vulnerable.

The market is expected to open up mixed today. Buyers looking for bargains, sellers looking to unload. The fate of AIG hanging in the balance could be another straw on the camels back:
NEW YORK (CNNMoney.com) -- The pressure on American International Group reached fevered pitch on Monday night as the troubled insurer was hit by a series of credit rating downgrades.

The cuts could prove deadly to AIG, the nation's largest insurance company, which is scrambling to raise much-needed capital.

Late Monday night, Moody's Investors Service and Standard & Poor's Ratings Services each said they had lowered their ratings.
Both candidates railed on the regulators; Obama:
"For eight years, we've had policies that have shredded consumer protections, that have loosened oversight and regulation, and encouraged outsized bonuses to CEOs while ignoring middle-class Americans," the Illinois Democrat said during a rally in Grand Junction, Colorado. "The result is the most serious financial crisis since the Great Depression."
but most interesting was Palin's GOP finger pointing and back stepping:
"Guys and gals, our regulatory system is outdated and needs a complete overhaul. Washington has ignored this. Washington has been asleep at the switch and ineffective, and management on Wall Street has not run these institutions responsibly and has put companies and markets at risk," Palin said during a rally in Golden, Colorado. "They place their own interests first instead of their employees and the shareholders who actually own these companies."
More regulation "our regulatory system is outdated and needs a complete overhaul. Washington has ignored this." from a GOP candidate. Funny thing is, she sounds more schooled on the realities of the economy then her ticket mate:
People are frightened by these events," McCain said. "Our economy -- I think still, the fundamentals of our economy are strong"
Ya know, in a 12 step program they say you can't fix something till you admit it is a problem to begin with. Maybe Sen McCain should check into an economic treatment program.


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