The Fed’s lifeline to rescue AIG was urgently needed to prevent a worldwide financial turmoil, but in weeks or months ahead, we’ll probably hear more on how it all started and who did or not do what, and believe you me, there will be lots of congressional subpoenas.
So, Senator Chris Dodd, get your gear up and go to work. Strict financial reporting and regulation are needed to prevent future financial crisis.
On October 9, 2007, the Dow closed at 14,164.53 for the first time ever, and yesterday, September 17, 2008 the Dow closed at 10,609.66, the worst yet in 7 years since September 17, 2001, the first day of trading after the terror attacks.
Yesterday, September 17th, the financial market erased about $700 billion in shareholder wealth, making it the worst single trading ever. Should we blame Bush for all of this, perhaps not? Most analysts lay a blame on the greed, and the crude oil and mortgage speculators.
This financial turmoil is just bad for the short run, in the long run, the market will swiftly recover and if you don’t pull out now, you’d be glad you didn’t.
Why not blaming Bush? Because Bush believes that “… the economy is bad because they built too many houses”.