I don't want to be a scaremonger, but it would not hurt for people to stock up on some provisions and some extra cash. My guess is that the next 6 months to one year will be very rocky for the economy. If the depression doesn't come, you'll be very prepared for the next hurricane.
It looks like the (latest) bailout plan is passing, despite overwhelming public opposition (at least 80-95%). Get ready for more after this "works" for a few days or weeks.
From the CNBC website today:
THE BANKING SYSTEM NEEDS ANOTHER $500 BILLION to survive beyond the $700 billion rescue plan being contemplated by Congress, said Pimco founder Bill Gross.
Again, I really do hope this works, but I feel sick to my stomach.
Here's a link to a sampling of the alternative plans some have proposed. Congress doesn't seem to care enough to consider any alternatives, though.
The Big Picture - bailout plan alternatives
Good luck, comrades. We're going to need it.
Rumor is that the Paulson plan is dead and the Dodd bill or some variation is a foregone conclusion.
Ah, now the media are calling it a "rescue plan." Poor victim investment banks.
If this passes, you will be paying for the rich bankers' mistakes and losses while they enjoy their enormous profits. More inflation will further erode your buying power. If you disagree with this, contact your representatives and complain. The fix is probably already in, but it can't hurt:
Link to Congress.org
I hope that if a plan passes it works, but I'm not betting on it.
This is circulating today; I found it on The Big Picture blog.
SUBJECT: REQUEST FOR URGENT BUSINESS RELATIONSHIP
DEAR AMERICAN:
I NEED TO ASK YOU TO SUPPORT AN URGENT SECRET BUSINESS RELATIONSHIP WITH A TRANSFER OF FUNDS OF GREAT MAGNITUDE.
I AM MINISTRY OF THE TREASURY OF THE REPUBLIC OF AMERICA. MY COUNTRY HAS HAD CRISIS THAT HAS CAUSED THE NEED FOR LARGE TRANSFER OF FUNDS OF 800 BILLION DOLLARS US. IF YOU WOULD ASSIST ME IN THIS TRANSFER, IT WOULD BE MOST PROFITABLE TO YOU.
I AM WORKING WITH MR. PHIL GRAM, LOBBYIST FOR UBS, WHO WILL BE MY REPLACEMENT AS MINISTRY OF THE TREASURY IN JANUARY. AS A SENATOR, YOU MAY KNOW HIM AS THE LEADER OF THE AMERICAN BANKING DEREGULATION MOVEMENT IN THE 1990S. THIS TRANSACTIN IS 100% SAFE.
THIS IS A MATTER OF GREAT URGENCY. WE NEED A BLANK CHECK. WE NEED THE FUNDS AS QUICKLY AS POSSIBLE. WE CANNOT DIRECTLY TRANSFER THESE FUNDS IN THE NAMES OF OUR CLOSE FRIENDS BECAUSE WE ARE CONSTANTLY UNDER SURVEILLANCE. MY FAMILY LAWYER ADVISED ME THAT I SHOULD LOOK FOR A RELIABLE AND TRUSTWORTHY PERSON WHO WILL ACT AS A NEXT OF KIN SO THE FUNDS CAN BE TRANSFERRED.
PLEASE REPLY WITH ALL OF YOUR BANK ACCOUNT, IRA AND COLLEGE FUND ACCOUNT NUMBERS AND THOSE OF YOUR CHILDREN AND GRANDCHILDREN TO WALLSTREETBAILOUT@TREASURY.GOV SO THAT WE MAY TRANSFER YOUR COMMISSION FOR THIS TRANSACTION. AFTER I RECEIVE THAT INFORMATION, I WILL RESPOND WITH DETAILED INFORMATION ABOUT SAFEGUARDS THAT WILL BE USED TO PROTECT THE FUNDS.
YOURS FAITHFULLY MINISTER OF TREASURY PAULSON
Comrades,
I realize I'm no economist, and I just dabble on financial blogs, so can someone help me out here? How does any bailout plan do anything but delay the inevitable? It's my understanding that if this plan passes, the banks face very little moral risk. What's to prevent these smart investment bankers, once the current crisis has passed (IF this bailout plan works), from developing more creative investments, knowing that any risk is now socialized, and leading us down the same path again?
Our economy has to have cycles; the enormous credit bubble has to pop sometime. Doesn't delaying it just increase the size of the recession/depression in our future? No one in power has been willing to give any opinion on exactly how bad the consequences might be if we let the natural economic cycle run its course. Are we so addicted to credit that we can't see the need to let the cycle run its course and take a lifestyle hit in order to save our nation's long-term viability?
I've been listening to Paulson's testimony a bit, and it's just scary. No specifics, no oversight, just give us a blank check NOW and stop asking questions. We have to slow this down and ask MORE questions.
Does the financial meltdown have you craving a little levity? Here's Hitler after a bad day in the market.
Since the latest stock market charts are bearing eerie resemblances to 1929, let's take a step back in time and try to forget the current financial meltdown for a moment.
My in-laws recently moved to a condo and gave us, among many other wonderful things, a bunch of old cameras and other antiques. I usually have a very modern aesthetic. Our house is all clean, simple lines and contemporary decor. However, I do get a charge out of cool old things like the camera above. It's a Kodak Pocket (they must have had big pockets back then,) model 1A, on the market from 1917-1924, original list price $21. As far as we can tell, it seems to work. It's too bad we don't manufacture much in the U.S. anymore and, even if we did, it sure wouldn't last almost 100 years. I think our modern trend toward disposability has partly fed the "steampunk" movement and the modification of traditional PCs to look like this:
As I said, this would clash horribly with my office and would probably be impractical, but I'd like one of these. Quite the conversation piece.
Alas, I must revert to hard-nosed pragmatism and put the old camera and other interesting items on Ebay. Now that the government is bailing out Wall Street, I need all the money I can get to buy more:
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