Old 17th September 2008, 21:29   #1
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Bush Says The Economy Is Ok, Stocks Tumble

It's strange but the government will bail out corporations but has done nothing to help the average person who is also under serious financial strain. Go Bush Go!

In fact Bush said he was 'upbeat about the economy".

WASHINGTON - The White House gave a newly nuanced description Wednesday of the U.S. economy, calling it a mixed picture and saying it ultimately will weather the current turmoil. Press secretary Dana Perino, President Bush's chief spokeswoman, also defended the extraordinary federal takeover of sinking insurance giant American International Group Inc., while not ruling out further private-sector bailouts by Washington.

Perino told reporters that help for other endangered corporations would be considered by the government on a "case-by-case basis."

Among those pleading for Washington's help, for instance, is the struggling U.S. auto industry, which has suffered massive losses but remains a backbone of the economy. A bill before Congress would give the companies $25 billion in federal loans, a program established but not funded under an energy bill passed last year. Perino said the White House would not comment on that prospect until Congress decides whether to go ahead with approving the money.

Perino refused to repeat the White House's standard line about the U.S. economy, often used by Bush, who has said that its "fundamentals are strong." Republican presidential candidates John McCain used that phrase Monday, earning him ridicule from Democratic opponent Barack Obama as being out of touch. McCain later clarified that he meant that the fundamental strength of the American worker remained strong.

NEW YORK - Wall Street plunged again in a crisis of confidence Wednesday as anxieties about the financial system still ran high after the government's bailout of insurer American International Group Inc. The Dow Jones industrial average dropped about 450 points, and investors seeking the safety of hard assets and government debt sent gold, oil and short-term Treasurys soaring.

The market was more unnerved than comforted by news that the Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company, which lost billions in the risky business of insuring against bond defaults. Wall Street had feared that the conglomerate, which has its tentacles in various financial services industries around the world, would follow the investment bank Lehman Brothers Holdings Inc. into bankruptcy. The ramifications of the world's largest insurer going under likely would have far surpassed the demise of Lehman.

But the moves left the market worried about problems that might worsen at other financial companies.

The two independent Wall Street investment banks left standing — Goldman Sachs Group Inc. and Morgan Stanley — remain under scrutiny, as does Washington Mutual Inc., the country's largest thrift bank. Morgan Stanley revealed its quarterly earnings early late Tuesday, posting a better-than-expected 7 percent slide in fiscal third-quarter profit. It insisted that it is surviving the credit crisis that has ravaged many of its peers.

Lehman filed for bankruptcy protection on Monday, and by late Tuesday had sold its North American investment banking and trading operations to Barclays, Britain's third-largest bank, for the bargain price of $250 million. Over the weekend, Merrill Lynch & Co., the world's largest brokerage, sold itself in a last-ditch effort to avoid failure to Bank of America Corp.

"People are scared to death," said Bill Stone, chief investment strategist for PNC Wealth Management. "Who would have imagined that AIG would have gotten into this position?"

He said the fear gripping the markets reflects investors' concerns that AIG wasn't able to find a lifeline in the private sector and that Wall Street is now fretting about what other institutions could falter. Over the past year, companies including Lehman and AIG have sought to reassure investors that they weren't in trouble, and now the market isn't sure who can and can't be trusted.

"No one's going to be believing anybody now because AIG said they were OK along with everybody else," Stone said.

According to preliminary calculations, the Dow fell 449.36, or 4.06 percent, to 10,609.66, finishing not far off its lows of the session. After a nosedive Monday, the index is down more than 7 percent on the week, and has fallen more than 25 percent since reaching a record close of 14,164.53 on Oct. 9 last year.

Broader stock indicators also fell sharply. The Standard & Poor's 500 index dropped 57.21, or 4.71 percent, to 1,156.39, while the Nasdaq composite index fell 109.05, or 4.94 percent, to 2,098.85.

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Old 18th September 2008, 20:31   #2
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Hold the boat folks... now Bush is working to calm the 'turmoil in the economy'. Didn't he, John McCain and Sarah Palin (through John McCains reps) tell us the economy is ok?

WASHINGTON - Eager to show that he feels people's pain, President Bush scuttled a political fundraising trip Thursday to tell the country his administration is working feverishly to calm turmoil in the financial markets.

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Bush was supposed to spend the day in Alabama and Florida raising money for Republicans and talking energy policy. He canceled his trip and sent Vice President Dick Cheney to sub for him at the fundraisers to focus on the worst financial meltdown since the Great Depression.

At the same time the following story just made me laugh:

WASHINGTON - Nebraska Republican Sen. Chuck Hagel said his party's vice presidential nominee, Sarah Palin, lacks foreign policy experience and called it a "stretch" to say she's qualified to be president.

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"She doesn't have any foreign policy credentials," Hagel said in an interview published Thursday by the Omaha World-Herald. "You get a passport for the first time in your life last year? I mean, I don't know what you can say. You can't say anything."

Could Palin lead the country if GOP presidential nominee John McCain could not?

"I think it's a stretch to, in any way, to say that she's got the experience to be president of the United States," Hagel said.

McCain and other Republicans have defended Palin's qualifications, citing Alaska's proximity to Russia. Palin told ABC News, "They're our next-door neighbors and you can actually see Russia from land here in Alaska, from an island in Alaska."

Hagel took issue with that argument. "I think they ought to be just honest about it and stop the nonsense about, 'I look out my window and I see Russia and so therefore I know something about Russia,'" he said. "That kind of thing is insulting to the American people."

Ok, it's prety obvious that anyone leaning Democrat has all but decided that Sarah Palin isn't even close to being VP much less Presidential material. This is a very serious issue considering McCain's age. But it's mind blowing when even members of the GOP agree whole heartedly that Palin isn't anywhere near ready and even calls it 'an insult to the American people' to be told she is.

For the last two years of the Clinton administration all the way through today the GOP has controlled all three branches of the government. Only in the past two years have the Democrats come close to having power but not enough to do anything constructive. So who's to blame?

Those in power. The rich got richer and the poor got poorer. The bad thing is when you make 99 % of the people suffer to benefit 1% eventually everything goes to shit. What is happening now is a direct result of that.

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Old 26th September 2008, 16:42   #3
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TOP DEMOCRATS I MEAN DEMORATS VOW REACH BAILOUT DEAL
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Old 27th September 2008, 01:36   #4
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Old 4th October 2008, 03:31   #5
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Bush Said Mission Acomplished and we still fighting in Irak...
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Old 4th October 2008, 06:59   #6
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The current economic situation isn't just the fault of George Bush and his policies.

This has been bubble and bust in my lifetime.

1970's - inflation and farm bubble
1980's - Farm bubble and farm bubble crash
1990's - .com bubble and crash, real estate bubble, stock bubble.
2000's stock crash, real estate bubble and crash
Now - energy bubble and I suspect a medical bubble.

The word is called "puffing". I learned this in real estate school. Our markets "Puff" prices until they crash. This situation isn't unique in 2008.

What is happening here is that capital seeks things that it can make money on. It isn't farms, the internet, real estate, stocks and one of these days it won't be energy or medical care.

I also suspect that we will soon have a health care crash because I think that's in a bubble too. It's about at 34% of GNP now?

Since none of the people with capital can find a profit in these things..... they buy T bills to keep from losing.... they are even willing to accept .7% interest rather than the risk.

Since all the categories above have been puffed from "mark to market" to gain those profits, the recession has to be controlled with this rescue plan. Investors are out of places to invest their money.... except energy... and medical ... that's why the expense of both is so high... it's puffed... What's puffed does become deflated eventually.

Money seeks money. Profit doesn't reflect productivity. It reflects puffing.

This is a situation that predates Bush or Clinton or even Carter.

Bush just happened to be holding the reigns when a one legged horse fell over.
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Old 4th October 2008, 07:05   #7
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Weren't you banned?

Spiral out, my friend. You will find your way back to yourself, we all will.
I'll be waiting, and shall see you on the other side...
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Old 4th October 2008, 07:12   #8
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a misunderstanding.
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Old 4th October 2008, 07:36   #9
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Don't you have other forums to post on?
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Old 4th October 2008, 07:38   #10
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If ROH is allowed back, I want 007 back. Surely that was a misunderstanding as well.

Spiral out, my friend. You will find your way back to yourself, we all will.
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Old 4th October 2008, 08:55   #11
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Would this be a good time to invest in something?



I think we like ROH better than 007. ROH can stay.

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Old 4th October 2008, 11:01   #12
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Quote:
Would this be a good time to invest in something?
If a guy could figure out where the bottom is. If you have anything left and/or a job after this falls all the way down.

I'm sure on Monday, the stock market will come up, but who knows about Tuesday?

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