Posts tagged ‘stock market’

October 13, 2008

Waukesha carnival 10/13/2008

by thoughtfulconservative

Let’s start this edition with local news.

Brookfield Alderman Scott Berg has several links concerning the city’s 2009 budget at 359 Degrees.

Darryl Enriquez at Waukesha FYI informs us on the testy public comments sessions at recent Waukesha common council meetings.

Fairly Conservative‘s Cindy Kilkenny wonders at Elmbrook Schools superintendent Matt Gibson’s thought processes.

Alexander at Hobo Springs posts about the anger at the Waukesha McCain/Palin rally that’s gained so much attention and notes that if we’re angry, it’s about the issues, not the personal stuff.

Curt Otto blogs at Maple and Main about a new store coming to downtown Waukesha.

Kyle Prast takes a break from political stuff at Practically Speaking to give us a glimpse of an outing to the Anaba Tea Room.

James Wigderson catches us up on the 97th Wisconsin Assembly district race at Wigderson Library & Pub.

Take this opportunity to check out Homemaker’s Guide to the Galaxy where MommaBlogger has a recipe for S’mores. The pictures will make your mouth water.

In national news, JJGravelle at The Daily Scoff expounds on what the international supporters of Obama say about him.

And we can’t forget the turmoil in the financial markets.

Dad29 points out derivitive cheerleaders Alan Greenspan and Robert Rubin, Secretary of the Treasury under Bill Clinton. Hmmm.

Well, I can predict the stock market won’t fall tomorrow. [UPDATE: Never try to read a financial post late at night.] The Asian Badger in this general post on the mess notes that tomorrow is Columbus Day, a federal holiday.

A couple of miscellaneous items.

Dan at Skeptics Anonymous reflects on a 2006 trip to Philadelphia to see the Brewers play.

Huckleberry Dumbell at The Spring City Chronicle just doesn’t give fine news summaries and nice poems, but also great pictures he has been acanning.

That’s it for this week’s edition. Each week I peruse local bloggers and select the ones I think are the best. It’s hard sometimes and you may not agree. So submit your own thoughts whether you’re a blogger or a reader. You can do so using this form. Or you can e-mail them to me. Or put them in the comments of this post.

Past posts and future editions can be found on our here.

October 7, 2008

Where’s my bailout?

by thoughtfulconservative

Via Yahoo News

Americans’ retirement plans have lost as much as $2 trillion in the past 15 months, Congress’ top budget analyst estimated Tuesday. The upheaval that has engulfed the financial industry and sent the stock market plummeting is devastating workers’ savings, forcing people to hold off on major purchases and consider delaying their retirement, said Peter Orszag, the head of the Congressional Budget Office. [emphasis mine]

September 29, 2008

House Rejects Bailout Package, Stocks Plunge

by thoughtfulconservative

Via the NYTimes.com

The vote against the measure was 228 to 205, with 133 Republicans joining 95 Democrats in opposition. The bill was backed by 140 Democrats and 65 Republicans.

Wisconsin’s delegation voted as follows:

Democrats 4-1 in favor (Baldwin, Kind, Moore and Obey for; Kagen against).

Republicans 2-1 against (Sensenbrenner and Petri against; Ryan for).

Each side blames the other for the failure. Republicans fault Nancy Pelosi’s speech before the vote. Democrats say the Republicans are putting partisanship before the country.

Stocks have tumbled. Shortly before the closing bell, the Dow was down 777 points, NASDAQ was down almost 200 points and the S&P 500 was down 106 points. A sea of red is scrolling across the bottom of CNBC’s screen. This is the largest drop in 10 years.

Republicans leadership is said to be working hard to get the thirteen votes they need to pass the bill.

Oh and another byproduct of this is that Citicorp is buying Wachovia.

The Asian Badger read the bail out bill and gives his thoughts.

September 20, 2008

Wall Street bailout – more questions than answers

by thoughtfulconservative

While I don’t agree with everything in this post, he asks a lot of good questions at the beginning.

Why is that every time bad investments made by private institutions go belly up, the U.S. taxpayers are called upon to socialize the financial risk? WHY?

Why is it that suddenly, government isn’t the problem, it’s the solution? [Ed.-My word, even Krugman has some good stuff here. Is the world going to end?]

Democrats and Republican lawmakers are to blame for the current mortgage and investment banking crisis. From a legislative perspective, they saw this coming years ago and did nothing to stop it. This has happened before. Remember when taxpayers were called upon to bailout the Resolution Trust Corporation and the S&L crisis in the 1990s?

I think he gives legislators too much credit. Maybe some saw what was coming. Most just hoped something would happen (like maybe they would get their pensions) before the worst happened.

Fannie and Freddie were worthy of rescue but not Lehman Bros. Then AIG and finally the whole ball of wax is going to get rescued. Will Lehman Bros. get a do over?

Cindy Kilkenny raises the question of financial terrorism. It didn’t originate with her; see her post for more links. I’m still not so sure, but it bears watching.

The Asian Badger (who, let’s say, knows what he’s talking about) had this to say,

In a way, over-regulation was how we got here (goes back to Congress mandating the underwriting of mortgages to non-qualified buyers…so all kinds of lax standards, shady brokers, swaps to manage the new risk, etc. sprang up).

See his post for his remedies. You may not agree with all of them, but many of them are common sense solutions, e.g., #6,

6) In line with #5, above, draw the line in the sand and announce the end of the “Greenspan Put” i.e. no more bailouts…period. I’ve written about the Greenspan Put and how it erases the “stupid penalty”. Put the stupid penalty back into the markets and watch the moronic risk-taking dry up. Risk-taking would still occur…it has to for the economy to move forward…but firms would have to adequately access the risk and price it accordingly. The end of the Greenspan Put would have the added effect of enabling shareholders and potential sharebuyers to realistically evaluate financial firms. [Ed.-Emphasis mine]

McCain told us what his plans were (other than Fire Chris Cox, that is). Obama is keeping his secret (a tip of the conservative hat to Nick). Unless you can get something from this.

Cato gives another result (H/T again to Nick),

In the process of turning US taxpayers into involuntary stockholders in AIG, Fannie Mae and Freddie Mac, federal bullies shoved the voluntary stockholders into the ditch. Bear Stearns stockholders weren’t treated much better.

If you’re still brave enough to own stock in other financial firms not yet blessed with such enlightened assistance from the feds, those precedents should make you nervous. So how could anyone possibly expect these “bailouts” to improve market confidence. [Ed.-emphasis mine]

I find myself agreeing somewhat with Patrick Buchanon states,

Notice who is managing the crisis. Not our elected leaders. Nancy Pelosi says she had nothing to do with it. Congress is paralyzed and heading home. President Bush is nowhere to be seen.

Hank Paulson of Goldman Sachs and Ben Bernanke of the Fed chose to bail out Bear Sterns but let Lehman go under. They decided to nationalize Fannie and Freddie at a cost to taxpayers of hundreds of billions, putting the U.S. government behind $5 trillion in mortgages. They decided to buy AIG with $85 billion rather than see the insurance giant sink beneath the waves.

An unelected financial elite is now entrusted with the assignment of getting us out of a disaster into which an unelected financial elite plunged the nation. We are just spectators.

Are we?

And what about the CEO’s who got large buyouts from these companies?

In conclusion, I know this post has been long and filled with contradictory statements from different folks. They offer different causes for the problem and propose different solutions. It demonstrates where I’ve been searching for answers.

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