The stimulus passed, the stock market tanked, Tim Geithner gave us a few details, and Rep. Paul Kanjorski told us about the day the world almost ended. Seriously, a big money day.
Lets start with a startling (at least to me) revelation that the economy came within a hairs breath of complete collapse last September 18th. Let’s watch a video, from the show Washington Journal on that aired on C-span on Sunday.The reason I bring this to you now is that I only caught on to this today.
Listen in particular to the minute or so from the 2:15 mark. There was, according to Rep. Kanjorski, a run on the money markets to the tune of ½ a trillion dollars… in an hour. After that they decided to close down the accounts and tell everyone that there money was guaranteed to the tune of a quarter of a million dollars per person. He also said that the predictions were that there would have been, had those things not been done, a draw-down on the money markets to the tune of over 5 and a half trillion dollars, which would have completely destroyed our economy.
WOW. Ladies and gentlemen, I knew it was bad, but if Rep. Kanjorski is right here, that makes me thankful they acted the way they did when they did. A near complete collapse of the American and then world economy…Oof, I shudder at the thought. One wonders if we are still susceptible to that kind of major meltdown again. My guess is no, not with all the money being thrown around to fix things on the macroeconomic level. But the ugliest thing Kanjorski says here is that we are in no better position now than we were three months ago. Double Oof i say.
Tim Geithner, America’s new treasury secretary. He has a plan to save the economy. His plan to save the economy? A stress test for banks.
This man looks Romulan to me
Wuh? i hear you say. You heard right, he will give the banks a stress test to see if they can take it. Those that can’t would be shut down.
And two trillion dollars in new investment money.
Yep! The Term Asset-Backed Securities Loan Facility, The fed program meant to thaw out the SBA and Consumer loan credit market is going to quintuple in size, from two hundred billion to one trillion dollars. There is also a new half trillion dollar “public-private” investment fund to purchase real estate and other troubled assets now burdening financial institutions.
A lot of people faulted Mr. Geithner for the lack of detail in his plan, but at least one person liked it upon hearing of it. American Bankers Association president, Edward Yingling, who gave a positive overall assessment of the plan. Read about it here.
The market heard mister Geithner as well. They heard him say “This isn’t about banks. This is about people” They apparently did not like it. When mister geithner stepped on the stage to talk, the market was down and dropped like a stone as he spoke. As he began to speak the market took a nose dive. Fell almost 100 additional points as I remember before he finished speaking, in about 20 minutes. The market ended at 7888.88, down 381.99 points.
There was something else… It’s right on the tip of my tongu… HEY! That’s right! The Stimulus Passed!
In a 61-37 vote the Senate passed the stimulus package, that had the support of just enough senators to pass. Republican Senators Snowe and Collins of Maine and Arlen Specter of Pennsylvania joined the Democratic Senators. I watched the proceedings myself, and I must say it was a thing of …well, it was a thing. These guys may talk until you, they and everyone in a five mile radius is blue in the face, once they set to getting the actual legislative work done, the actual voting done, it is a lightning quick process. The second vote, the one that actually made it official, the Nelson/Collins amendment, took all of 6 minutes.
WHEW. Only one more hurdle to go, and we can get to work getting the economy back on track, no matter how much the Republicans want it to fail just so they can say “I told you so” Which they might just do anyway,Idiots that they are…they are notoriously bad at math. How else do you think the economy got f***** up in the first place?
Enough from me. A second video, a few quotes and I am outta here.
My Favorite romulan, Tim Geithner at the press conference announcing his economic plans, as shown on Bloomberg television. As i watch this, I am noticing that the market didn’t move quite the way i remember it.
That’s it for me. Later!
Today’s Nugget, Via Wikiquote: How many people ruin themselves by laying out money on trinkets of frivolous utility? What pleases these lovers of toys is not so much the utility, as the aptness of the machines which are fitted to promote it. All their pockets are stuffed with little conveniences. They contrive new pockets, unknown in the clothes of other people, in order to carry a greater number. They walk about loaded with a multitude of baubles, in weight and sometimes in value not inferior to an ordinary Jew’s-box, some of which may sometimes be of some little use, but all of which might at all times be very well spared, and of which the whole utility is certainly not worth the fatigue of bearing the burden. Adam Smith