US Financial Crisis.
Since I have been interested in options trading, I have been following up on political and financial news. The news that surprised me the most was of the rejection of the $700 billion bailout. especially after the president himself “approved” of the action, but apparently the decision lay in the hands of the house of representatives. and apparently a majority of them decided to against the president’s approval.
I wonder if the people making the decisions fully understood what they were voting on.
Or was it of fear, those that fear financial meltdown voted yes for hopes of rekindling the economy. Those who voted yes, may have feared backlash from their colleagues who are against the bailout. I wonder if people care at all.
I thought the idea was better than no idea at all, obviously left to themselves the financial market will get worse.
I don’t have a degree in economics, but I am just guessing where this will be headed, the ones who support the bailout will try again until a majority says so, or/and when it is too late the market will crash harder. Of course there is a matter of foreign intervention, as I have read through wikipedia to study the previous US recession and depression. Foreign countries some how played a role in bringing down or up the US market. Looks like the crashing market might, cause the prices to go low enough that banks in other well off countries will be tempted to buy them out when the price couldn’t go low enough or when they think it will profit them. unfortunately other foreign stock exchanges have also felt the dip when US stocks is diving down.
Warren Buffet has already invested $5 Billion into a financial institution, I can’t help but wonder whether if he thinks it will go up, or he thinks it will go up if buys it(i think it did) or he thinks it will stay up if he puts in $5 billion votes of confidence. $5 billion should still be a significant amount of money, even if is from one of the richest man in the world.
I guess we will just to have to wait and watch…
Paraphrasing a line from anthony hopkins in the movie “the edge” – When men get lost, most of the time they die of shame, ashamed that they got lost in the first place, rather than focusing on what could have gotten them out – thinking.