Wall St, FUBAR !

What a week!

Where to start! Sunday night Lehman brothers filed chapter 11. Feds didn't bail out this time (?!). AIG bailed out by Feds. Meryl Lynch is part of BofA now. And then Dow Jones lost so many points and again rallied at the same pace. Everything which Americans thought risk-free is at risk now.

Banks, Money Market funds. (could you imagine that few money market share values went below $1.) I can't believe my bank Wachovia anymore.

Bail outs Season
Bail outs. USA is now the most socialist economy in the world.
Let's see the numbers
Bear Sterns $29B
Freddie Mac and Fannie Mae $200B
AIG $89B

and as I write this Bush and his team are pitching $700B bailout plan to the congress.
The total tab $1.018 Trillion. Yes, that's 12 zeroes fellas.

and 700B is a very rosy estimate. God knows how much more money Fed is gonna put in. And Detroit auto companies are in line for their Bail out.

My first Question. Where's all this money coming from? Our economy is in deficit of $407 Billion. And the National Debt $10.6 trillion. See this video Money as Debt. As we see, USA economy isn't fundamentally strong.

Henry Paulson, the treasury secretary is leading the effort and he is pulling all the stops to face this crisis. He's doing a good job. In a way I can't oppose these bail outs, coz otherwise the whole economy might tumble down.

But again rich corporations were not held accountable for this mess. Imagine you or me, abusing our credit cards on big screen TVs, shopping, bad mortgages and file for bankruptcy. Would the Feds come for your resuce? F NO!!. But corporations did that and yes Fed rescued'em.

Interesting point here. SEC banned shorting of Financial stocks for 3 weeks. For the beginners, shorting is a kinda trading in which you profit if the stock price goes down. But wall st made billions in the last decade in shorting with their hedge funds. Isn't it ironical that the same companies destroyed so many companies with their shorting techniques.

It's not 'Surge' which is working in Iraq. It's the money US govt is giving to Shiite militants to stop attacks. And Dems VP candidate Joe Biden is putting a bill in Congress asking for 1 Billion aid to Georgia. Are they outta their F'in mind. How in this world are we gonna send aid when our economy itself is in direness.

US Govt doesn't have money to upgrade infrastructure, schools, health care in USA. Could you believe that FAA is still using 50 year old Radar based navigation for civilian flights in USA. FAA can't afford 150 Billions budget to upgrade it to GPS system. And we had already spent $580 Billions in Iraq war.

Now imagine John McCain being elected in November. McCain has been big backer of Deregulation bills until last tuesday. Suddenly, he's asking for more regulation of Wall st now. So if McCain goes to White house, he's gonna ask Social Security privatization. And medicaid, your retirement everything is at risk. As I see it, we're not even at the end of crisis. This is just the beginning !

And I've to use a line from Bill Maher
"Please don't call this crisis as Market correction, it's a catastrofuck."

to be contd...