Tuesday, October 7, 2008
money woes and woahs
I am not an economist. I wasn't even a business or finance major in college. I have a degree in English with a focus on American Literature and Political Science. But I also am not blind or deaf. I watched the news yesterday. I watched the stocks yesterday. Did you?
Certainly I don't expect the 800 billion dollar bailout to work overnight, or even in weeks or months. My best guess is that we'll see the full implications of it in 3-5 years. Do understand however, that I was against government action and overhaul. I think we as individuals thrive and don't need legislators and taxed programs to enable our potentials.
Two weeks ago as the bailout was being discussed in the House, in almost certainty that it would be passed, we watched as the DOW plummeted the largest single-day loss ever. The next day, as congress voted the bailout down, the DOW had one of the largest gains in US history. Nearly a week later as the new 458 page document passed through the Senate and House and was signed by the President, we again watched the DOW plunge below 10,000. I imagine many "un-educated, non-economist types" were confused.
But in the sidelines, the US dollar began to gain in value, oil dropped to $90 a barrel (down from $150), which also drove down the prices of commodities such as milk, cheese, produce, etc. Its a cyclical climate that seems to have risen as high as it could, popped, and is leveling itself back out. Have we seen the worst of it...who knows? Did the bailout do any good...i hope so - i truly hope I was WAY wrong in being against it!
But one has to wonder, what's going on?
Posted by Ross Christopher at 10:04 AM