One of the biggest – if unspoken – reasons for proposing the bailout is that quickly doing something big will reassure investors and the public.
That argument has just failed (even with the PPT‘s best efforts).
Today, the stock market, Nasdaq, S&P, oil and gold all got hammered. Everything being down at the same time means that investors are panicking, and pulling money out of the markets.
This is on the heels of the Senate passing the Paulson bailout plan (with a little added lipstick), and widespread reports in the mainstream media that the bill will likely pass in the House on the second round.
In other words, the real economic crises are swamping any false hope from the phony bailout remedy.
As an article on Bloomberg puts it, “U.S. Stocks Decline on Concern Bank Rescue Won’t Stop Slowdown“.
Since the bailout won’t calm investors or the public’s fears, let’s just save the trillions in taxpayer money and start addressing the real problems facing America. Or – if the government is going to do something – it should address the real problems with real solutions.