Wednesday, September 17, 2008

Another Wall Street Rout

Not surprisingly, the Dow fell 450 points. Another tough day as continuing uncertainty about the U.S. financial system goes on.


deepie said...

The economy is in shambles. It's amazing that McCain and his supporters are all clamoring that the economy is strong. Over the last few days, some have stepped forward to "clarify" what McCain means by saying the fundamentals are strong. He is apparently referring to the American workforce. Well, duh. Of course the workforce is strong. Americans work more than does any other country's population.

McCain simply doesn't have the knowledge to discuss the problems with the economy so all we'll ever get out of him is the claim that he's going to control spending and clean up Washington. Isn't that what the President should be doing anyway?

He's all substance when it comes to repairing the economy.

Rob said...

The poll numbers are reflecting the growing unease about the economy and who voters see as better qualified. Clearly the trendline is toward Obama.

In all honesty, I have great concerns about the future financial stability of the nation. I think it is more likely that we will see Dow 9000, than we see Dow 12,000. Until we know where the bottom is, there is going to continue to be volatility that hurts everyone from Wall Street to Main Street.

The part that is sad is that if you were financially responsible and didn't overextend yourself on a house or car, you scrimped and saved and put a few bucks away into a 401k, or retirement account your investment is likely taking a huge hit and possibly being wiped out depending on the firm you invested in. If you were living large, you have a chance at a taxpayer-funded bailout or some mortgage/interest rate relief.

The solutions that Bushie's administration is pushing reward the people responsible and those who tried to game the system and force those of us who were responsible to pick up the tab.

deepie said...

Even if Obama is elected, it will be next to impossible for him to repair this mess Bushie's gotten this country into. Obama's policies will at the very least control the hemorrhaging that is currently occuring. Regardless, we simply cannot allow the Republicans who have created this mess in the first place to convince us that they can fix the problem.

Rob said...

The challenges are great, and it will take years to undo, but we simply cannot afford to dig the hole any deeper.

I think the goal of an Obama administration will be to try to take control of the deficit and stop the accumulation of debt. This is what Robert Rubin did as Treasury Secretary under Clinton. Rubin is a key advisor to Obama. Once that happens, the dollar can strengthen as confidence in the dollar grows.

If the mountain of debt grows even higher, the dollar will continue to lose value.

It will be a slow process, but it can be done.