All Posts Tagged With: "President Bush"
Why US Dollar and T-Bonds Are Biggest Losers in Bailout Plan
Any celebrations over this government bailout (if it gets passed) will be short lived, says Russell McDougal at Investor’s Daily Edge. The $700 billion plan will merely reinforce the fraudulent status quo in US money markets. And that means it will merely postpone the inevitable day of reckoning. Russell says this is a “disastrous long-term strategy” that will eventually wipe out the US dollar and Treasury bonds.
What Should Be Happening in the Free Market
The Bush administration’s failed $700 billion bailout of the financial markets “constitutes the single greatest case of ignoring the free market in modern history,” according to Chuck Butler. Here’s what Chuck says should be happening in a free market. It starts with “an effective cleansing period” and is followed by “a healthy recovery period.”
Early Indicators: Longest Recession Since 1981-82
– “The US may face its longest recession in a quarter century no matter what action Congress takes on Treasury Secretary Henry Paulson’s $700 billion plan to rescue the battered banking industry,” says Bloomberg. The US economy shrank in the third quarter, and “a further contraction is likely in the next two quarters … which would make the recession the longest since 1981-82.”
– After the biggest one-day point drop in history for the Dow US stock futures are pointing to a recovery today. “S&P 500 futures rose 25 points to 1,143.80 and Nasdaq 100 futures added 13.5 points to 1,525.50. Dow industrial futures rose 136 points,” reports MarketWatch.
Republican Opposition to Paulson’s Bailout Plan Stalls Talks
An insurrection among Republicans in the House of Representatives Friday torpedoed any chance that the Bush administration’s planned $700 billion plan would pass expeditiously, as members of the House refused to back U.S. Treasury Secretary Paulson’s measures and offered up their own plan to solve the credit crisis – a plan they say does not cost the American taxpayer.
Compromise Bailout Deal Emerges
Congressional negotiators late yesterday reached a tentative agreement on a credit-crisis compromise. It gives the Bush administration about a third of the $700 billion it has requested up front but made sure half that outlay was subject to a congressional veto, reports William Patalon III.
U.S. Stocks Skid as Bailout Bogs Down, President to Address the Nation
U.S. stocks dropped for the third straight day yesterday (Wednesday) on worries that increasingly rancorous debates will squelch a proposed $700 billion bailout of the U.S. financial system even as Federal Reserve Chairman Ben S. Bernanke warned Congressional leaders that the credit crisis was already damaging the American economy.
Congress Listens, Fails to Move
In the currency market, the dollar edged higher against the euro. Late Wednesday, the euro was trading at $1.4619 vs. $1.4645 on Tuesday. Traders were on pins and needles during the second day of Big Ben and Hammerin’ Hank’s hard sell to Congress about their proposed bailout plan.
McCain Win Would Boost Oil, Defense and Big Pharma Stocks
An inherited budget deficit of over $400 billion will tie the hands of whoever is elected president this November.
However, Money Morning’s Martin Hutchinson says a McCain victory would boost defense and Big Pharma stocks. And McCain’s VP choice, Sarah Palin, is a strong advocate of more drilling for oil, which is encouraging for domestic oil stocks.
On the other hand, McCain would likely hold onto Ben Bernanke as Fed chief. This would mean an extended period of low interest rates and painful inflation down the line.
The Real World Order
“But this time it’s different!!!” Any time you hear that from a financial analyst, you should run. Or better still, take the other side of his trade! If you’re numerically oriented, you know that patterns tend to revert to the mean.
How US Foreign Policy Is Killing its Economy
The U.S. has wasted the last decade trying to boost its influence Central Asia, when it should have been getting its own house in order. That’s the view of James Howard Kunstler, writing in The Daily Reckoning. He says the solution to the West’s energy crisis will not be found in the Caspian Sea. And the U.S. still has no real influence in Russia’s backyard. As a result, says James, while Russia oil-rich economy is alive and kicking, America’s banking system is effectively dead…
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