Monday, September 22, 2008

Dollar down, oil up despite bailout

"I think they made the right decision," Dodd said in a television interview. "You could have had not only a national but a global meltdown" if Bear Stearns had been allowed to declare bankruptcy - (WSJs Market Watch, by Greg Robb) - Senator Chris Dodd on April 3, 2008

So I guess $30 billion was supposed to do the trick?

Freddie and Fannie seemed to be like the penultimate, that they had to be rescued. - Fox's Neil Cavuto on September 17, 2008
And this past weekend, "everyone" agreed on the "need" for another $700 billion bailout.

And what's being reported tonight (Sept 22) by the APs Patrick Rizzo?

Elation in the financial markets over the $700 billion bank bailout plan evaporated Monday and was replaced by all-too-familiar anxiety, pummeling stocks and sending oil prices to their biggest one-day gain.

Worries that the rescue package would cost too much, drive up inflation, swell the already-bloated deficit and hurt the ailing economy also led global investors to flee the U.S. dollar.

I completely oppose this bailout for Wall Street. President Bush and others can try to tie this Banking Bailout to Main Street, but the benefit is going to Wall Street. And IMO, all of these talking head bailout supporters have been discredited. It's one bailout after another. Their billionaire banker buddies can't get enough of the US Taxpayer.

The 2008 Billionaire Bankers' Bailout is already up to $2 trillion. And the $30 billion for Bear Stearns was supposed to avert this meltdown?

Yet with this weekend's $700 billion bailout, money is still fleeing the US dollar for commodities, such as gold* and oil.

I expect a fairly serious recession will occur with no bailout. But the collapse of the dollar would be far worse. And when the Fed & Treasury decide we need a few more trillion dollars to bail out Wall Street... well... eventually the rest of the world will catch on and the dollar could collapse.

Tim White

* People aren't fleeing gold because it has 3000 years, not 30 years, of value.

1 comment:

Anonymous said...

Tim: Are you and Ron Paul romatically involved? Yeeesh!