Wall Street Surges As Workers Lose Their Jobs and Their Homes

Discussion in 'Economy' started by coolgeee, Jul 21, 2008.

  1. coolgeee
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    coolgeee Member

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    "What accounts for the seemingly irrational response of the stock market to this dismal news? In a basic sense, the answer is to be found more in politics than in economics.

    "The newfound bullish optimism among major Wall Street players—as transient as it may prove to be—can be traced in large part to the decision by the Fed to rescue Bear Stearns last month and open the Fed discount window for cheap loans to the big investment banks. This move, without precedent since the Great Depression, was taken to avert an imminent collapse of the US and global banking system, and it signaled that the US government would do whatever was necessary—ultimately at taxpayer expense—to bail out Wall Street.

    "It is this implicit guarantee from the government that has shifted the mood among big market players and institutions from fear and panic to a measure of confidence, bringing with it a new eruption of risk-taking and greed.

    "As Floyd Norris, the economic commentator for the New York Times, wrote on Friday, “... investors are starting to assume that the government stands behind Wall Street. The share prices of investment banks began to recover just after the Fed made it clear the investment banks could borrow from it."


    Editorial Digest
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  2. Wow
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    Wow BANNED

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    Reid and Pelosi are the twin economic killers!
     
  3. Paulie
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    Paulie Platinum Member

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    Get out of the Dollar.
     
  4. Ravi
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    Ravi Diamond Member

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    Yuh, not to mention the government is bailing out failing banks. Good for the short term, but a bad move for the long term...no accountability will result.

    And Wuh blaming it on Dems is nothing more than his usual partisan blather.
     
  5. Charles_Main
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    Charles_Main AR15 Owner

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    I find myself agreeing with Ravi once again, so much for Bobo saying I am a hard core Neo-con.
     
  6. Ravi
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    Ravi Diamond Member

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    lol, I'm just sensible, Charles, reality knows no political agenda.
     
  7. Charles_Main
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    Charles_Main AR15 Owner

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    well said, to bad so many around here have completely escaped reality.
     
  8. Paulie
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    Paulie Platinum Member

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    The accountability issue is a good reason for being against it, but what about the inflation, debt, and tax burden that will inevitably ensue?

    There are more bank failures to come. When is enough ENOUGH?
     
  9. sealybobo
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    sealybobo Diamond Member

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    The Fed is partially privately owned. Carnege, jp morgan and rockafellor started it. Control the money and you control the country and people.

    The Fed loves the further we go into debt. All income tax, which is unconstitutional, goes to paying some of the interest on the debt.

    Congress, senate and President didn't approve of bear stearns bail out. They just did it. That was our money. Now we are further in debt. Their excuse? It would have colapsed the economy if they didn't do it. BULLSHIT.

    So much for free markets. If these banks predatory lended for 8 yrs unregulated, that was delay and bush. The Fed should take the hit. The rich bankers who own our monetary system should bail bear stearn with their own personal wealth. Bush, chaney, haloburton, telecoms, exxon, top 1 percent, etc should all pay us americans back what they stole for the last 8 yrs.

    Yes brother, it is time to take America back.
     
  10. Paulie
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    Paulie Platinum Member

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    See now, you confuse me. You usually hit the liberal talking points right on the head, and you apparently support Obama. But then you come in and hit all the typical Ron Paul talking points, which are anything BUT liberal.

    How can you be a tax and spend liberal, and advocate free markets, getting rid of the Fed (which bankrolls spending), and letting failing banks fail?
     

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