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Ravinder Makhaik

Ravinder Makhaik — Mon, 29 Sep 2008 00:00:00 +0000

The bloodbath in the global markets continues.

Even as news about congress in a emergency meet having voted to bailout the financial markets broke out, banks in Europe were seized with the ripple effect of the US credit crisis.

What strange logic is this - the profits are for the private sector, the risk is on the government and the losses are on the tax payer.

The government by trying to hold the sand slipping through its hand and pumping in $ 700 billion, may prove counter productive.

It erodes value in the dollar which may be the last thing that the US economy may want at this hour.

The crisis triggered by living expensively compounded by wars fought in the aftermath of the 9/11 attack, may just be meeting its catharsis.

Chee

Chee — Mon, 29 Sep 2008 00:00:00 +0000

Not only it will adversely affect the stock markets but it will also weaken the dollar further. With the kind of foreign debt that is on America, huge reserves holder like China can cut the jugular of the world’s mightiest nation anytime it wishes.

CSU

CSU — Tue, 30 Sep 2008 00:00:00 +0000

I am glad that it didn’t pass the House though it will eventually happen. Else it would have destroyed the dollar. Now unemployment will probably go up 30 percent but then housing prices will come down to normal.

Edward

Edward — Tue, 30 Sep 2008 00:00:00 +0000

But we can do nothing but to sit back and watch as the financial sector crumbles and pray to god that we don’t lose our jobs. We are helpless to do anything about it but sit and watch the bloodbath........

Ricky

Ricky — Tue, 30 Sep 2008 00:00:00 +0000

Personally I don’t want the bailout because it is a travesty and will be the final nail to our future. It is an ideological thing more than anything for us. The long term effects will obviously be bad as everyone knows.

Sierra

Sierra — Tue, 30 Sep 2008 00:00:00 +0000

The bailout rejection by the house today has already sent the Wall Street in a tailspin. So what does this mean? It means that the stock markets need the bailout to happen. But what will be the long term ramifications?

Laura

Laura — Tue, 30 Sep 2008 00:00:00 +0000

Not at all. I think it is just the opposite. When the government intervenes to save the common man’s investment, the stock markets always have confidence. The bailout rejection by the House has made stock markets dive.

Deck

Deck — Tue, 30 Sep 2008 00:00:00 +0000

Instead of helping the financial companies the government should have actually helped the homeowners directly with the debt burden. This would have kept the health of the companies well and we wouldn’t have come to this situation now. Also, this would have been a great populist move by the Republicans on an election year.

Paul

Paul — Tue, 30 Sep 2008 00:00:00 +0000

Well, all I can say that America trying to act so communist is actually not taking a good decision pushing for the $700 billion bailout. This will erode the dollar and the markets being artificially restored will eventually make the American and subsequently the world economy go bust.

Dale

Dale — Tue, 30 Sep 2008 00:00:00 +0000

This is unprecedented in American history. I don’t know if a bailout of this kind happened ever in America or any capitalist economy, at least of this magnitude. We don’t know yet what it is going to be like for the stock markets in the future.

Kristian

Kristian — Tue, 30 Sep 2008 00:00:00 +0000

It may give a short term boost to the stock markets but what will happen in the long term? The stock markets are governed by market forces and not with the financial support pledge from the government. This is too bad.

Max

Max — Tue, 30 Sep 2008 00:00:00 +0000

You should seek the answer to this complicated question from a financial expert. I guess Governor Palin fits the bill of being a financial expert because she has seen the inside of a bank once where she had an account once.

Roy

Roy — Tue, 30 Sep 2008 00:00:00 +0000

I think it will but we will have to wait and see how it affects the market in the future. The rejection of the bailout proposal in the House resulted in a crash in the stock markets today. But it will pick up because the bailout is inevitable.

Eric

Eric — Tue, 30 Sep 2008 00:00:00 +0000

What the US government is proposing in the form of bailout is not unprecedented. Many capitalist economies have done this including the psuedo-communist China and free market economy United Kingdom. There is nothing to fear.

Guangxing

Guangxing — Tue, 30 Sep 2008 00:00:00 +0000

Don’t think so because the failure of getting the bailout bill passed by the Bush administration has sent domestic stocks crashing in the US and it is having a domino effect on Asian markets as well. You can see the bloodbath today.

Kam

Kam — Tue, 30 Sep 2008 00:00:00 +0000

In fact the bailout would have stabilized the markets a bit because the investor confidence would not have been shaken as much as it has now because of the rejection of the bailout proposal by the House. Uncertainty is always bad for the markets and we are seeing uncertainty now.

Richard

Richard — Tue, 30 Sep 2008 00:00:00 +0000

Definitely in the long run the markets would suffer. Therefore the countries of the world must pass the hat to collect $700 billion to bail George Bush out of this piquant situation where his own men are not voting for him.

Koruja

Koruja — Tue, 30 Sep 2008 00:00:00 +0000

The bailout proposal that got defeated in the house is a temporary arrangement to control the financial and economic crisis that is ailing the United States.

When the bill eventually gets passed, we would still not know for sure how it will affect the markets. The future is grim and uncertain.

Jennifer

Jennifer — Tue, 30 Sep 2008 00:00:00 +0000

I dunno but I am kinda on the fence on this issue. The greedy mortgage companies are paying and learning a lesson from this now. I want to see this becoming even worse, worse than it is now. Let them bleed to death.

Reina

Reina — Tue, 30 Sep 2008 00:00:00 +0000

I can hardly care about the stock markets because the investors and the companies whose life depend on the good health of the markets are the ones who insanely inflated housing prices like greedy hogs that has resulted in the crisis we see today. I would like to see the Dow Jones set on fire.

Clarkei

Clarkei — Tue, 30 Sep 2008 00:00:00 +0000

Contrary to what people feared, the failure of the bailout bill has actually ripped the markets apart all across the globe. Perhaps the bailout idea wasn’t so bad after all that some ‘experts’ made us to believe.

Ranbir Dahiya

Ranbir Dahiya — Sun, 05 Oct 2008 00:00:00 +0000

Agree